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Manisha Could Work for Another Firm Making $10,000 Per Month

question 68

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Manisha could work for another firm making $10,000 per month, but she decides to open her own gourmet cheese store and pay herself $2,000 per month. In her first month of operations, she spends $6,000 on cheese, $1,000 on other items, and $2,500 on rent. She had a great opening month and brought in revenues of $14,500. According to her accountant, what are Manisha's profits?


Definitions:

Discharging

The process of fulfilling or settling a debt, obligation, or legal liability, effectively freeing one from the responsibility.

Judgment

A decision of the court.

Conditions Precedent

Contractual stipulations that must be met before a contract becomes effective or before an obligation must be fulfilled.

Frustrated Contract

A contract that, through no fault of either party, is rendered incapable of being performed due to an unforeseen event, leading to the contract being void and freeing all parties from their obligations.

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