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Business, 02.03.2020 17:10 BilliePaul95

The Montgomerys are opening up a smoothie shop. Mr. Montgomery is giving up his real estate position making $150,000 a year and Mrs. Montgomery did not work outside of the home prior to the opening of the smoothie shop. The Montgomerys are renting a building in a strip mall for $17,000 per year. They anticipate spending an average of $20,000 on ingredients and appliances each year, and they anticipate revenue of $300,000 a year once they are established. Calculate the Montgomerys' annual economic profit.

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