Ariana withdrew 400000 out of her personal savings account


Ariana withdrew $400,000 out of her personal savings account and used it to start her new internet cafe. the savings account pays 2 percent interest per year. During the first year of her business, Ariana sold 2,000 cups of coffee for $2.50 per cup and 4,000 hours of internet time at $2.50 per hour. During the first year, the business has costs totaling $9,000. You may assume that there is no opportunity cost to Ariana's time.

a) What was Ariana's accounting profit for the year?

b) What was Ariana's economic profit for the year?

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Business Economics: Ariana withdrew 400000 out of her personal savings account
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