Recall Application 1, "Don't Forget the Costs of Time and Invested

question 146

Multiple Choice

Recall Application 1, "Don't Forget the Costs of Time and Invested Funds," to answer the following questions.
-According to the application,if this year Betty spends $100,000 of her own money on materials, the interest rate is 5%, has living expenses of $20,000 and could have made $50,000 in her former line of employment, then Betty's opportunity cost of operating the business this year is:

• A) $155,000.
• B) $150,000.
• C) $50,000.
• D) $55,000.

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Definitions:

Markup

The difference between the cost of a product or service and its selling price, expressed as a percentage of the cost, used to cover expenses and generate profit.

FOB Shipping Point Pricing

A term in shipping where the buyer is responsible for the goods once they leave the seller’s premises, including paying for shipping and handling.

Corporate Customers

Businesses or organizations that purchase a company's products or services, often in bulk or on a contractual basis.

Luxury Food

High-quality, often expensive food items that are considered rare or indulgent, typically consumed as a sign of wealth or for special occasions.