Macroeconomics help accounting/economic profit
1. Polythene Pam operates a boutique selling bags, boots and kilts. Each year, Pam receives revenue of £200,000 from sales. The cost of goods sold is £100,000. Additional expenses (electricity, taxes…) total £20,000. Pam has been offered £40,000 to be the accountant for Mean Mr. Mustard’s Hot Dogs. Maxwell Edison, a manufacturer of silver hammers, has offered Pam £50,000 to rent her store.
Provide the necessary information (accounting/economic profit) that will help Pam explain to her friends that, despite making a profit, she should work for Mr. Mustard.
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