Megan Used to Work at the Local Pizzeria for $15,000

question 54

Multiple Choice

Megan used to work at the local pizzeria for $15,000 per year but quit to start her own deli. To buy the necessary equipment, she withdrew $20,000 from her inheritance (which paid 8 percent interest) . Last year she paid $25,000 for ingredients and $500 per month rent but had revenue of $50,000. She asked her dad the accountant and her mom the economist to calculate her profit for her.

• A) Dad says she lost $11,000 and Mom says she lost $26,000.
• B) Dad says her profit is $31,000 and Mom says her profit is $16,600.
• C) Dad says her profit is $9,000 and Mom says she lost $6,000.
• D) Dad says her profit is $9,000 and Mom says her profit is $2,400.

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Definitions:

Transactional

A type of interaction or relationship based on exchanges or transactions, often emphasizing the giving and receiving of goods, services, or information.

Progress Report

A document or update that outlines the status, developments, and achievements of a project or task over a certain period.

Memorandum

A written communication, often brief, used within an organization to convey information, directives, or policy updates.

Business Report

A formal document that presents information and analysis to assist in decision-making, often including findings, recommendations, and specific data.