Sue quit her $40,000 per year job and opened a coffee shop that she calls Top Brew. In the first year, Top Brew earned $200,000 in revenue. For the same year, Top Brew paid $80,000 to employees in wages, spent $45,000 on ingredients such as coffee beans, $15,000 rent for the building to house Top Brew. Sue also used $50,000 of her personal savings to purchase equipment for Top Brew, which she was earning $5,000 in interest each year. Assuming no depreciation in the value of the equipment, Sue's economic profit from Top Brew for the year is $ Just enter a value. Do not include the "$" sign.

Sue quit her $40,000 per year job and opened a coffee shop that she calls Top Brew. In the first year, Top Brew earned $200,000 in revenue. For the same year, Top Brew paid $80,000 to employees in wages, spent $45,000 on ingredients such as coffee beans, $15,000 rent for the building to house Top Brew. Sue also used $50,000 of her personal savings to purchase equipment for Top Brew, which she was earning $5,000 in interest each year. Assuming no depreciation in the value of the equipment, Sue's economic profit from Top Brew for the year is $ Just enter a value. Do not include the "$" sign.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 5PA

See similar textbooks

Similar questions

Nicole purchased a new printing machine and started a small printing shop. As per her calculations, to earn revenue of $6,000 per month, she needs to sell printouts of 27,000 sheets per month. The printing machine has a capacity of printing 35,300 sheets per month, the variable costs are $0.03 per sheet, and the fixed costs are $2,200 per month. a. Calculate the selling price of each printout. Round to the nearest cent b. If they reduce fixed costs by $310 per month, calculate the new break-even volume per month. Round up to the next whole number c. Calculate the new break-even volume as a percent of capacity. ↑ % →
please sir do it correctly will upvote I stuck please help me
Jaime owns and manages a café in Collegetown whose annual revenue is $5,000. Annual expenses are as follows: Labor Expense Food and drink Electricity Vehicle lease Rent Interest on loan for equipment Amount $2,000 500 100 150 500 1,000 a. Calculate Jaime's annual accounting profit. $ b. Suppose Jaime could earn $1,000 per year as a recycler of aluminum cans, but she prefers to run the café. In fact, she would be willing to pay up to $275 per year to run the café rather than to recycle. Is the café making an economic profit? , (Click to select) the café is making an economic (Click to select) of $ Should Jaime stay in the cafe business? (Click to select) per year. c. Suppose the café's revenues and expenses remain the same, but recyclers' earnings rise to $1,100 per year. Is the café making an economic profit? (Click to select) ✓ the café is making an economic (Click to select) of $ per year. Should Jaime stay in the café business? (Click to select) d. Suppose Jaime had not had gotten a…
Morgan took $400 000 out of their savings account to start an ice cream stand. The savings account paid 5% interest. In the first year, Morgan sold 12,000 batches of ice cream at a price of $3 each, and incurred costs of $12,000 which involved outlays of money. What was Morgan’s economic profit in the first year?
Please explain how to calculate the profit calculation
Write a paragraph to explain to your CEO that based on using regression analysis, through using the solver tool of excel, recalculate the optimum units to produced this month is 800 pro 200 mini to have the maximize revenue of $174,400.00. Explain what/why would it be if you make any changes in the units to stay within the constraints that you have it would produce less money.
Explain it now I upvote
Hi Can you please assist to complete the following table
D 3 om for the four Juanita's Performance Pizza is a small restaurant in Dallas that sells gluten-free pizzas. Juanita's very tiny kitchen has barely enough ovens in which her workers bake the pizzas. Juanita signed a lease obligating her to pay the rent for the four ovens for the next year. Because of this, and because Juanita's kitchen cannot fit more than four ovens, Juanita cannot change the number of ovens she uses in her production of pizzas in the short run. However, Juanita's decision regarding how many workers to use can vary from week to week because her workers tend to be students. Each Monday, Juanita lets them know how many workers she needs for each day of the week. In the short run, these workers are variable inputs, and the ovens are fixed inputs. Esc Juanita's daily production schedule is presented in the following table. Fill in the blanks to complete the Marginal Product of Labor column for each worker. Output Marginal Product of Labor (Pizzas) (Pizzas) Labor (Number…
How to Determine "Accounting Profit"
Can I get some assistance in getting this graph done in Word.
Total revenue of the firm is $3500 and the price per unit is $70 Calculate output