Question

Joe quit his job as a salesman where he made $35,000 per year to start his own t-shirt making business. his business expenses are $6,000 per year on rent, $12,000 per year on supplies, and $4,000 per year on part time help. as for his personal expenses, his apartment costs him $4,800 per year and his personal bills are an extra $1,200 per year. what is joe's opportunity cost of running the business

Answer 1

$28,000 a year with his personal expenses
$18,000 a year without personal expenses