Refer to Scenario 9.5. The weekly economic profit is

A) $1,000.
B) $0.
C) -$900.
D) -$3,600.

Question

Refer to Scenario 9.5. The weekly economic profit isA)  $1,000.B)  $0.C)  -$900.D)  -$3,600.

Marco William Rinon · Accepted Answer

Final Answer : C, Explanation :  The total weekly revenue is $2,700 (900 meals x $3). Total weekly costs include $1,000 in other fixed costs, $1,000 in wages, $600 in materials, and $1,000 as a 10% return on investment ($520,000 x 10% / 52 weeks = $1,000). Total costs are $3,600. Therefore, the economic profit is $2,700 - $3,600 = -$900.

Refer to Scenario 9.5. The weekly economic profit is

A) $1,000.
B) $0.
C) -$900.
D) -$3,600.

Definitions

Learning Objectives

Learning Objectives

Related questions