Chad runs a coffee shop that has annual revenues of $300,000, supply costs of $6
ID: 1093592 • Letter: C
Question
Chad runs a coffee shop that has annual revenues of $300,000, supply costs of $60,000, and employee salaries of $60,000. He has the option of renting out the coffee shop for $80,000 per year, and he has three outside offers from competitors to work as a senior barista at Starbucks (for an annual salary of $30,000), at Simon's coffee house (for an annual salary of $40,000), and at Pete's coffee shop (for an annual salary of $60,000). He can only hold one job at a time. What should Chad do?
A.He should continue to run his coffee shop.
B.He should rent out his coffee shop and take the job at Pete's.
C.He should rent out his coffee shop and take the job at Starbucks.
D.He should rent out his coffee shop and take the job at Simon's.
Chad runs a coffee shop that has annual revenues of $300,000, supply costs of $60,000, and employee salaries of $60,000. He has the option of renting out the coffee shop for $80,000 per year, and he has three outside offers from competitors to work as a senior barista at Starbucks (for an annual salary of $30,000), at Simon's coffee house (for an annual salary of $40,000), and at Pete's coffee shop (for an annual salary of $60,000). He can only hold one job at a time. What should Chad do?
A.He should continue to run his coffee shop.
B.He should rent out his coffee shop and take the job at Pete's.
C.He should rent out his coffee shop and take the job at Starbucks.
D.He should rent out his coffee shop and take the job at Simon's.
Explanation / Answer
1) He should continue to run his coffee shop.
His profit is $ 180000 per year. that is more than all other offers.