Philip Owns and Operates a Gas Station

question 19

Multiple Choice

Philip owns and operates a gas station.Philip works 40 hours a week managing the station but doesn't draw a salary.He could earn $800 a week doing the same work for Terrance.The station owes the bank $100,000 and Philip has invested $100,000 of his own money.If Philip's accounting profits are $1,000 per week while the interest on his bank debt is $300 per week, the business's economic profits are

• A)-$100 per week.
• B)$200 per week.
• C)$0 per week.
• D)$700 per week.
• E)$1,000 per week.

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Definitions:

Frostbite

A condition that occurs when skin and other tissues freeze due to exposure to cold temperatures, potentially leading to permanent damage.

R-134a

A type of refrigerant commonly used in vehicle air conditioning systems, known for its low environmental impact compared to earlier refrigerants.

R-1234yf

A refrigerant used in automotive air conditioning systems that has a lower global warming potential compared to its predecessors.

Timing Belt

A belt that synchronizes the rotation of the engine's crankshaft and camshaft(s) to ensure correct timing for valve opening and closing.