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Dolores Used to Work as a High School Teacher for $40,000

Question 117

Multiple Choice

Dolores used to work as a high school teacher for $40,000 per year but quit in order to start her own catering business.To invest in her factory,she withdrew $20,000 from her savings,which paid 3 percent interest,and borrowed $30,000 from her uncle,whom she pays 3 percent interest per year.Last year she paid $25,000 for ingredients and had revenue of $60,000.She asked Louis the accountant and Greg the economist to calculate her profit for her.


A) Louis says her costs are $25,900,and Greg says her costs are $66,500.
B) Louis says her costs are $25,000,and Greg says her costs are $65,000.
C) Louis says her profit is $66,500,and Greg says her costs are $66,500.
D) Louis says her profit is $75,000,and Greg says her costs are $41,500.

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