Rob quit a job working 20 hours per week at a subway sandwich shop to make sandwiches himself in his college dorm room that he sells to hungry students. if he had been paid $9 per hour at subway and now works the same 20 hours per week but sells his sandwiches for $300 a week and pays only $100 a week for supplies how much economic profit does he make?

Question

Penelope Jones

Business

5 December, 22:18

Rob quit a job working 20 hours per week at a subway sandwich shop to make sandwiches himself in his college dorm room that he sells to hungry students. if he had been paid $9 per hour at subway and now works the same 20 hours per week but sells his sandwiches for $300 a week and pays only $100 a week for supplies how much economic profit does he make?

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Deangelo Ibarra · Answer 1

If Rob sells his sandwiches for $300 dollars a week and pays only $100 dollars a week for supplies he earns $200 dollar a week in profit $300-$100=$200. In addition he now earns $10 per hour ($200/20hrs = $10 per hour). He now makes more money per hour than when he worked at the sandwich shop.