Pat used to work as an aerobics instructor at the local gym


Pat used to work as an aerobics instructor at the local gym earning $35,000 a year. Pat quit that job and started working as a personal trainer. Pat makes $50,000 in total annual revenue. Pat's only out-of-pocket costs are $12,000 per year for rent and utilities, $1,000 per year for advertising and $3,000 per year for equipment.Refer to the information given above. Pat's accounting profit is _______, and Pat's economic profit is _______.

A. $50,000; $15,000

B. $34,000; -$1,000

C. $34,000; $15,000

D. -$1,000; -$1,000

Request for Solution File

Ask an Expert for Answer!!
Business Economics: Pat used to work as an aerobics instructor at the local gym
Reference No:- TGS01648260

Expected delivery within 24 Hours