Question

John was a high school teacher earning a net salary of $54,000 per year. After
working for one year, he quit his job to start his own milk bar business. In order
to start the business, John borrowed $40,000.00 from the bank and was paying
5 percent interest per year. Also, John withdrew $ 50,000 from his savings
account. He had been earning 5 percent interest per year for this account.
John’s first year of business can be summarised as follows:
Item Amount $
Revenue- Fresh milk section 250,000
Revenue- Yogurt Section 180,000
2 Cashiers expense (wages per worker) (40,000)
Truck expense (80,000)
Manager expense (60,000)
Milk sales assistant expense (30,000)
Equipment expense (50,000)
Motorcycle expense to ease movement in
city

(30,000)
2 milk freezers (cost per freezer) (5000)
Based on your calculations of accounting profit and economic profit, would you
advise John to return to his teaching job or continue with the milk bar business?
Show your work! (7 marks)

Answer 1

Answer:

kitne saal se question ko likh rahe the

Answer 2

Explanation:

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