Suppose a Firm Has an Annual Budget of $200,000 in Wages

question 81

Multiple Choice

Suppose a firm has an annual budget of $200,000 in wages and salaries,$75,000 in materials,$30,000 in new equipment,$20,000 in rented property,and $35,000 in interest costs on capital.The owner/manager does not choose to pay himself,but he could receive income of $90,000 by working elsewhere.The firm earns revenues of $360,000 per year. What is the economic profit for the firm described above?

• A)-$90,000.
• B)$0.
• C)$90,000.

---

Definitions:

Responsible

Being accountable for one's actions and obligations and making decisions that positively impact oneself and others.

Messy Desk

Signifies a work area that is disorderly or cluttered, often reflecting on the occupant's organizational style.

Organized

The ability to arrange or structure things in a systematic way, making it easier to find, use, or keep track of them.

Peak Performer

An individual who consistently achieves top performance levels in their field of activity through dedication and skill refinement.