Scenario 13-13 Christine Is an Artist Who Creates Custom Cookie Jars. Her

question 269

Multiple Choice

Scenario 13-13
Christine is an artist who creates custom cookie jars. Her annual revenue from selling the cookie jars is $90,000. The annual explicit costs of the materials used to make the cookie jars are $54,000.
-Refer to Scenario 13-13. Christine used $5,000 from her personal savings account to buy pottery tools for her business. The savings account paid 1% annual interest. Christine could earn $6,000 per year as a tax preparer. What is the annual economic profit of her cookie jar business?

• A)$36,000
• B)$35,950
• C)$30,000
• D)$29,950

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Definitions:

Revenue-Raising

Activities or policies implemented to increase the financial income of an organization or government.

Farm Subsidies

Financial support and assistance given by the government to farmers and agribusinesses to supplement their income, manage the supply of agricultural commodities, and influence the cost and supply of such commodities.

Agricultural Output

The total quantity of agricultural products, such as crops and livestock, produced within a given period.

Capital Equipment

Long-term assets, such as machinery, buildings, or vehicles, that a business uses in the production of goods or services.