Ask Question
22 December, 16:48

Jillian runs a small printing business. She spends $2000 / month on ink, $30,000 a year on rent for the building, and $60,000 a year on her two employees. Jillian makes $120,000 a year in revenue. If she wasn't in printing, Elsie could also work as a consultant and make $80,000. Year. She could also earn $200,000 by taking advantage of her JD and be in corporate law. What is Jillian's annual economic profit on the printing business.

+3
Answers (1)
  1. 22 December, 17:08
    0
    Jillian's annual economic profit on the printing business is $6,000

    Explanation:

    Cost of ink = $2000/month = $2000*12/year = $24,000/year

    Annual rent = $30,000

    Annual salary of employees = $60,000

    Total annual expenditure = $24,000 + $30,000 + $60,000 = $114,000

    Annual revenue = $120,000

    Annual economic profit = annual revenue - annual expenditure = $120,000 - $114,000 = $6,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Jillian runs a small printing business. She spends $2000 / month on ink, $30,000 a year on rent for the building, and $60,000 a year on her ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers