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:

Host-Country National

An individual from the country where a foreign subsidiary is located and who works for that subsidiary.

Expatriates

Individuals who live and work outside their native country, often for professional assignments.

Expatriate

An individual who resides in a country other than their native country, often for work purposes.

Host-Country National

A citizen of the country where a foreign subsidiary or operation is located, employed by the subsidiary.