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Marge Opens an Oxygen Bar in a Building She Owns

Question 2

Multiple Choice

Marge opens an oxygen bar in a building she owns.She used to rent the building to her brother in law for $10,000 a year.To open the oxygen bar,Marge quit her job as a physician assistant,which paid $80,000 a year.As a bar owner,Marge has to pay $40,000 a year wages for her bartender,spend $25,000 a year for supplies,and the utilities bill is $9,500 a year.To cover the start-up costs,she used up all of her savings which earned $4,600 in interest.What are her explicit costs?


A) $40,000
B) $49,500
C) $84,600
D) $94,600
E) $74,500

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