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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