Refer to Scenario 9.4 below to answer the question(s) that follow. SCENARIO 9.4: Sponsors invest $100,000 in a new deli on the promise that they will earn a return of 10% per year on their investment. The deli sells 52,000 sandwiches per year. The deli's fixed costs include the return to investors and $42,000 in other fixed costs. Variable costs consist of wages ($1,000 per week) plus materials, electricity, etc. ($2,000 per week). The deli is open 52 weeks per year.Refer to Scenario 9.4. Suppose the average price per sandwich is $5.50. What is the annual profit of the deli?
A. -$22,000
B. $78,000
C. $130,000
D. $244,000
Answer: B
Economics
You might also like to view...
The nominal interest rate is approximately equal to the real interest rate minus the inflation rate
Indicate whether the statement is true or false
Economics
Which of the following is a correct characterization of socialism?
A. Tradition answers the basic economic questions. B. Markets are used exclusively to answer the basic economic questions. C. Central planning is seldom used to answer the basic economic questions. D. Government ownership of many resources and centralized decision-making answers the basic economic questions.
Economics