Jolene is opening a doggy daycare named "Little Barks." She is leaving her current job where she makes $75,000 per year in order to start her own business. The building that Little Barks will be located in is already owned by Jolene, as she was leasing this location out to a tenant for $5,000 per month. Additionally, Jolene will have to pay $10,000 for business permits and insurance in case one of the dogs bites another dog or a person. Jolene will need to buy dog food, toys, beds, and other miscellaneous equipment that will cost an estimated $20,000. She expects revenue to be $125,000 a year. Calculate Jolene’s accounting and economic profit. Address whether Jolene should open Little Barks, or stay at her current job. Fully explain how you came to your answers.
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Jolene is opening a doggy daycare named "Little Barks." She is leaving her current job where she mak...
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