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 for them at $125,000 per year. currently, she is producing her own cookies, and she has revenues of $260,000 per year. her costs are $40,000 for labor, 1$10,000 for rent, $35,000 for ingredients, and $5,000 for utilities. she has $100,000 of her own money invested in the operation, which if she leaves can be sold for $40,000 that she can invest at 10 percent per year.

a. calculate her accounting and economic profits.

b. advise her as to what she should do.

Check the following analysis

Explanation:

Part a.

Accounting Profits: amount of money you actually make

Accounting Profits from taking Job: 125,000+(1+.1)*40,000=169,000

Accounting Profits from owning Business: 260,000-40,000-10,000-35,000-5,000=170,000

Economic Profits: amount of money you make over the best secondary option

Economic Profits from taking Job: -1,000

Economic Profits from owning Business: +1,000

Part b.

Based on the previous analisis you would advise her to continue working on his job.

hello the answer is d

employers prefer to hire ingenious, resourceful people because ingenious people may be more liable to engage in unethical deportment as they can cerebrate outside of the box