Marge Opens an Oxygen Bar in a Building She Owns

question 20

Multiple Choice

Marge opens an oxygen bar in a building she owns.She used to rent the building to her brother in law for $10,000 a year.To open the oxygen bar,Marge quit her job as a physician assistant,which paid $80,000 a year.As a bar owner,Marge has to pay $40,000 a year wages for her bartender,spend $25,000 a year for supplies,and the utilities bill is $9,500 a year.To cover the start-up costs,she used up all of her savings which earned $4,600 in interest.Total annual revenue at the end of the year is $450,000.Marge's accounting profit is:

• A) $450,000
• B) $375,500
• C) $169,100
• D) $280,900
• E) $410,000

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Definitions:

Ranking

The act of arranging or grading individuals, items, or concepts according to their achieved level, performance, or quality.

Delphi Technique

A structured communication method that relies on a panel of experts answering questionnaires in two or more rounds to converge on a consensus solution or decision.

Six Questions Technique

A problem-solving approach that involves asking six specific questions to thoroughly understand a situation or challenge.

Nominal Group Technique

A structured decision-making process where individuals rank ideas or solutions, after which group discussions and prioritizations lead to a final decision.