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Question: explain step by step not getting the correct numbers...

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explain step by step not getting the correct numbers

10.00 points John Jones owns and manages a cafe in Collegetown whose annual revenue is $5,000. Annual expenses are as fallows: Expenae abor ood and dink ectnc ty ehicle lase ent nterest on Inan tor equipment だ1(1 a) Suppose John could earn $1,100 per year as a recycler of aluminum cans. However, he prefers to run the cafe and is vwilling to pay $275 per year to run the cafèe rather than to recycle. Is the cafe making an economic profitr , the café is making an economic kos of -350 per year Should John stay in the cafe business? No, he should not stay in the cefé business. b) Suppose John had not had to get a $10,000 loan at an annual interest rate of 10 percent to buy equipment, but instead had invested $10,000 of his own money in equipment. Calculate Johns annual accounting profit. $10rbl c) Suppose John could eam $1,000 a year as a recycler, and he likes recycling just as well as running the cafe How much additional revenue would the café have to collect each year to eam a normal pront? 2501

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