Sister-in-law started her own online business

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Your sister-in-law started her own online business, RainingCats&Dogs, pet walking business. She runs her business from her kitchen. Her supplies consist of 10 leashes she bought online ($120) and a new pair of sneakers ($150). She also uses her own car to drive to her clients' houses to walk the pets. Her car is paid off. She is licensed by the city ($200/per year fee), renewable every year. She recycles the grocery plastic bags for cleaning after the pets during her pet-walking business. Her only other cost is the gas for the car, which totaled $50 in one month.

At the end of her first month of business, your sister-in-law is brimming with pride, she made $500 (cash) in revenue from walking 20 pets. 

Q: As a managerial economics guru, calculate her TC, VC, FC, ATC, AVC, AFC, sunk cost (if any), and gently explain to your sister-in-law whether she should continue operating.

Reference no: EM132404690

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