Anvi runs a coffee shop that has annual revenues of $300,000, supply costs of $60,000, and employee salaries of $60,000. She has the option of renting out the coffee shop for $80,000 per year, and she 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 Peet's coffee shop (for an annual salary of $60,000). She can only hold one job at a time. What should Anvi do?

Question

Quizplus · Accepted Answer

Anvi should continue to run her coffee shop because it generates the highest income ($300,000 - $60,000 - $60,000 = $180,000) compared to the other options.

Anvi Runs a Coffee Shop That Has Annual Revenues of $300,000