Until recently, Rosemarie worked as an accountant, earning $30,000 annually. Then she inherited a piece of commercial real estate that had been renting for $12,000 annually. Rosemarie decided to leave her job and operate a Peruvian restaurant in the space she inherited. At the end of the first year, her books showed total revenues of $260,000 and total costs of $230,000 for food, utilities, cooks, and other supplies. Her economic profit at the end of one year is:

-$12,000

Explanation:

Given that

Annually earning = $30,000

Renting annually = $12,000

Total revenue = $260,000

Total cost = $230,000

The computation of economic profit is shown below:-

Economic profit = Total revenue - Total cost - Annually earning - Renting earning - Renting annually

= 260,000 - 230,000 - 30,000 - 12,000

= -$12,000

since the options are not listed, when you are working on your budget you should also add water, tv, internet, miscellaneous and your 'fun' money for in your budget. when budgeting, you need to allow for fun money, and mis/accidental money so that you stick to the budget and not go crazy because you feel strapped to the budget.