Sheila's Sports Shop is a very popular sporting goods store, which has a yearly revenue of $600,000. Sheila runs the business herself. Her alternative employment options are to be a college swimming coach for $50,000 per year or a construction worker for $40,000 per year. Sheila spends $230,000 purchasing goods for resale to her customers. She also has four employees, who each earn $25,000 per year. Sheila owns the building that her Sports Shop is housed in and she could have rented it out for $20,000 per year. Sheila's costs for resources bought in the market equal

Question

Quizplus · Accepted Answer

Sheila's costs for resources bought in the market include the cost of goods for resale ($230,000) and the wages for her four employees ($25,000 each, totaling $100,000). Therefore, the total cost is $230,000 + $100,000 = $330,000.

Sheila's Sports Shop Is a Very Popular Sporting Goods Store