The Following Is Cost Information for the Creamy Crisp Donut

question 127

Multiple Choice

The following is cost information for the Creamy Crisp Donut Company.Entrepreneur's potential earnings as a salaried worker = $50,000 Annual lease on building = $22,000
Annual revenue from operations = $380,000 Payments to workers = $120,000
Utilities (electricity, water, disposal) costs = $8,000
Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000 Entrepreneur's
Forgone interest on personal funds used to finance the business = $6,000
Creamy Crisp's implicit costs, including a normal profit, are

• A)$136,000.
• B)$150,000.
• C)$94,000.
• D)$156,000.

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Definitions:

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