Last year Jarod left a job that pays 80 000 to run his own

Last updated: 10/23/2023

Last year Jarod left a job that pays 80 000 to run his own bike repair shop Jarod s shop charges 65 for a repair and last year the shop performed 5 000 repairs Jarod s production costs for the year included rent wages and equipment Jarod spent 60 000 on rent and 100 000 on wages for his employees Jarod keeps whatever profit the shop earns but does not pay himself an official wage Jarod used 30 000 of his savings to buy a machine for the business His savings were earning an annual interest rate of 4 percent Instructions Enter your answers as a whole number If you are entering any negative numbers be sure to include a negative sign in front of those numbers a What is Jarod s annual accounting profit 135000 b What is Jarod s annual economic profit 92900