Pat Used to Work as an Aerobics Instructor at the Local

question 27

Multiple Choice

Pat used to work as an aerobics instructor at the local gym earning $35,000 a year.Pat quit that job and started working as a personal trainer.Pat makes $50,000 in total annual revenue.Pat's only out-of-pocket costs are $12,000 per year for rent and utilities,$1,000 per year for advertising and $3,000 per year for equipment.
Refer to the information given above.For Pat to earn normal profit,accounting profit would have to be _______.

• A)$50,000
• B)$35,000
• C)$15,000
• D)0

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Definitions:

Finance

The study of money; how it’s made, how it’s lost, and how it’s managed.

Delegation of Authority

The process by which responsibility and authority are transferred from one person or group to another, often to ensure tasks and decisions are made effectively.