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Math Help - Econimics

  1. #1
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    Econimics

    An individuals leaves a college faculty, where she wass earning $40,000 a year, to begin a new venture. she invests her saving of $10,000 when were earning 10% annuallly. she then spends $20,000 on official equipment, hire two students at $30,000 a year each, rents office space for $12,000 and has other variable expenses of $40,000 at the end of the year her revenues were $200,000. What is her accounting profit and her economic profit for the year?
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  2. #2
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    An individuals leaves a college faculty, where she wass earning $40,000 a year, to begin a new venture. she invests her saving of $10,000 when were earning 10% annuallly. she then spends $20,000 on official equipment, hire two students at $30,000 a year each, rents office space for $12,000 and has other variable expenses of $40,000 at the end of the year her revenues were $200,000. What is her accounting profit and her economic profit for the year?

    What are the year's events?

    No College Salary: (40000)
    Invested Savings: (10000)
    Lost Interest: (1000)
    Office Equipment: (20000)
    Two Employees: (60000)
    Rent: (12000)
    Other Expenses: (40000)

    There must be something with the opposite sign. Income?
    Which ones are cash and which are opportunity lost?
    Which produced real assets and which are sunk funds?
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