Explore BrainMass
Share

Explore BrainMass

    Sydney is interested in starting a new business, what is her economic profit?

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Sydney is interested in starting a new business, but would have to give up a job with a total compensation of $100,000 per year. After researching the new business opportunity, Syndey developed the following estimates.

    Annual Revenues: $300,000
    Wages and payroll taxes (not including Sydney): $100,000
    Benefits: $25,000
    Supplies and materials costs: $75,000
    Rent: $60,000

    What is Sydney's economic profit?

    (Do NOT include symbols such as a dollar sign ($) or comma (,) in your answer. You can include decimal points and negative signs but don't leave a space between a negative sign and the number.)

    © BrainMass Inc. brainmass.com October 10, 2019, 3:03 am ad1c9bdddf
    https://brainmass.com/economics/international-economics/sydney-interested-starting-new-business-economic-profit-405254

    Solution Preview

    Sydney is interested in starting a new business, but would have to give up a job with a total compensation of $100,000 per year. After researching the new business opportunity, Syndey developed the following estimates.

    Annual ...

    Solution Summary

    This solution provides calculations for Sydney's economic profits for staring a new business.

    $2.19