Maryann and Don Want to Open Their Own Deli

question 5

Multiple Choice

Maryann and Don want to open their own deli.To do so, Maryann must give up her job, at which she earns $20, 000 per year, and Don must give up his part-time job, at which he earns $10, 000 per year.They must liquidate their money market fund, which earns $1, 000 interest annually.The rent on the building is $10, 000 per year, and expenses for such necessities as utilities, corned beef, and pickles are $35, 000 annually.What minimum amount of revenue per year would make it worthwhile, financially, for Maryann and Don to operate the deli?

• A)$10, 000
• B)$35, 000
• C)$45, 000
• D)$31, 000
• E)$76, 000

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Definitions:

Credit Balances

Situations in financial accounting where a customer has paid more than the total amount due for goods or services, resulting in a surplus in their account.

Professional Courtesy Discount

A discount offered by professionals to their peers, employees, or other selected individuals as a form of respect or acknowledgement.

Discounts

Discounts are reductions from the usual cost of goods or services, often used as an incentive for purchase.

Double-Entry Bookkeeping

An accounting method where every entry to an account requires a corresponding and opposite entry to a different account, ensuring the accounting equation balances.