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

question 111

Multiple Choice

Megan used to work at the local pizzeria for $15,000 per year but quit in order 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 costs for her.

• A)Dad says her cost is $9,000 and Mom says her cost is $2,400.
• B)Dad says her cost is $31,000 and Mom says her cost is $35,000.
• C)Dad says her cost is $25,000 and Mom says her cost is $16,600.
• D)Dad says her cost is $31,000 and Mom says her cost is $47,600.

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Definitions:

Extension

In general terms, it refers to the act of increasing the length or duration of something or expanding its scope or coverage.

Expansion

The act or process of increasing in size, volume, quantity, or scope.

Cognitive Flexibility

The mental ability to switch between thinking about two different concepts, or to think about multiple concepts simultaneously.