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Pat Used to Work as an Aerobics Instructor at the Local

Question 27

Multiple Choice

Pat used to work as an aerobics instructor at the local gym earning $35,000 a year.Pat quit that job and started working as a personal trainer.Pat makes $50,000 in total annual revenue.Pat's only out-of-pocket costs are $12,000 per year for rent and utilities,$1,000 per year for advertising and $3,000 per year for equipment.
Refer to the information given above.For Pat to earn normal profit,accounting profit would have to be _______.


A) $50,000
B) $35,000
C) $15,000
D) 0

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