Sue Is Considering Leaving Her Current Position to Open a Coffee

question 142

Multiple Choice

Sue is considering leaving her current position to open a coffee shop.Sue's current annual salary is $83,000.Annual coffee shop revenue and costs are estimated at $260,000 and $210,000,respectively.What is Sue's opportunity cost of opening the coffee shop in the first year?

• A)$40,000
• B)$83,000
• C)$210,000
• D)$343,000

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Definitions:

Shortage Costs

Costs associated with the unavailability of inventory or goods, leading to lost sales, backorders, or production delays.

Adjustment Costs

Expenses incurred by a company or economy in making transitions or changes to a new policy, process, or condition.

Same Day Value

Financial transactions that are settled on the same day they are initiated.

Concentrator Account

A single centralized bank account that consolidates funds from various sources for the purpose of streamlined management.