The Following Is Cost Information for the Creamy Crisp Donut

question 204

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 accounting profit is

• A) $150,000.
• B) $380,000.
• C) $230,000.
• D) $294,000.

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Definitions:

Bystander Effect

The situation wherein people are less inclined to assist someone in need when there are others around.

Social Exchange Theory

A hypothesis positing that actions within a society stem from a transactional process designed to optimize advantages while reducing disadvantages.

Bystander Effect

A social psychological phenomenon where individuals are less likely to offer help to a person in need when other people are present.

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Disturbance or turmoil caused by a large amount of noise and confusion.