Danielle_Cost_Profit_Example - purchase the furniture and...

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Suppose Danielle is considering opening her own beauty salon. She anticipates the following costs per year: Furniture: $40,000 Equipment: $30,000 Rent: $18,000 Coloring products: $12,000 Styling products: $8,000 Danielle is withdrawing $70,000 from her savings account that pays 2 percent interest per year to
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Unformatted text preview: purchase the furniture and equipment and is quitting her current job that pays $28,000. She expects that the total revenues from the new business in the first year will be $125,000. Calculate the following: Explicit costs: Implicit costs: Accounting profit: Economic profit:...
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This note was uploaded on 05/12/2011 for the course ECON 2030 taught by Professor Bong during the Spring '07 term at LSU.

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