The Following Is Cost Information for the Creamy Crisp Donut

question 76

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
Refer to the data.Creamy Crisp's accounting profit is:

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

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Definitions:

Small Businesses

Entities that are privately owned, operate with a small number of employees, and typically have a low volume of sales.

Securing Adequate Financing

The process of obtaining the necessary funds to start or expand operations, typically through loans, equity investments, or other financial instruments.

Small Businesses

Enterprises characterized by a small number of employees and/or low volume of sales, often defined by local or national standards.

Loans

Financial arrangements in which a lender provides funds to a borrower with the expectation of repayment over time, typically with interest.