Ms. Resa has been working as lecturer at MTIM and earning a salary of PHP 8,000 per month. Also, she sells Mango Float once a week. In a week she can earn total revenue of PHP1,500 with a cost (labor, materials, ingredients) of PHP 750. If she will make it in full time working 5 days per week she can earn up to PHP7,500 with a cost of PHP 3,750 per week. Should Ms. Resa quit her job and work full-time for her Mango Float business? Or Not? Defend your answer by calculating the Accounting profit and Economic profit.

Ms. Resa has been working as lecturer at MTIM and earning a salary of PHP 8,000 per month. Also, she sells Mango Float once a week. In a week she can earn total revenue of PHP1,500 with a cost (labor, materials, ingredients) of PHP 750. If she will make it in full time working 5 days per week she can earn up to PHP7,500 with a cost of PHP 3,750 per week. Should Ms. Resa quit her job and work full-time for her Mango Float business? Or Not? Defend your answer by calculating the Accounting profit and Economic profit.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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