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Business, 27.03.2020 04:52 xaviuzc

Peggy-Sue’s cookies are the best in the world, or so I hear. She has been offered a job by Cookie Monster, Inc., to come to work at $160,000 per year. Currently, she is producing her own cookies, and she has revenues of $250,000 per year. Her costs are $80,000 for labor, $22,000 for rent, $40,000 for ingredients, and $5,000 for utilities. She has $300,000 of her own money invested in the operation, which, if she leaves, can be sold for $35,000 that she can invest at 20 percent per year.

a. Calculate her accounting and economic profits.

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