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Ivahew [28]
3 years ago
10

Until recently you worked as an accountant earning $55,000 annually. Then you inherited a piece of commercial real estate bringi

ng in $25,000 rent annually. You decided to leave your job and operate a video rental store in the office space you inherited. At the end of the first year, your books showed total revenues of $60,000 and total costs of $30,000 for video purchases, utilities, taxes, and supplies. What is the total cost of operating the video store?
Business
1 answer:
Blizzard [7]3 years ago
4 0

Answer:

Total cost of operating the video store is $110,000

Explanation:

You decided to leave your job and operate a video rental store in the office space you inherited. You would not received the annually income from your job and rent commercial real estate.

Total income lost = $55,000 + $25,000 = $80,000

Total cost of operating the video store = Total income you lost + total costs for video purchases, utilities, taxes, and supplies = $80,000 + $30,000 = $110,000

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