Harvey Quit His Job at the University of Toronto Where

question 82

Multiple Choice

Harvey quit his job at the University of Toronto where he earned $45,000 a year,the same as other employees of normal ability,the same as other employees of normal ability.But Harvey is unusually talented in another area,and he figures his entrepreneurial talent,or forgone entrepreneurial income,to be $5000 a year.He cashed in $100,000 in bonds that earned 10% interest annually to buy a software company,Extreme Gaming.In the first year,the firm sold 11,000 units of software at $75 per unit.Of the $75 per unit,$55 goes for the costs of production,packaging,marketing,employee wages and benefits,and rent on a building.
-Refer to the above information.The normal profit in the first year was

• A) $5000.
• B) $10,000.
• C) $45,000.
• D) $60,000.
• E) $250,000.

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Definitions:

Hyperopia

A common vision condition also known as farsightedness, where distant objects can be seen clearly but close ones do not come into proper focus.

Myopia

A vision condition characterized by difficulty in seeing distant objects clearly, commonly known as nearsightedness.

Presbyopia

A condition associated with aging in which the eye exhibits a progressively diminished ability to focus on near objects due to the loss of elasticity of the lens.

Corneal Ulcer

An open sore on the cornea, the clear layer in front of the eye, which can cause pain, redness, and vision problems, usually resulting from infection or injury.