Reference no: EM132282223

Jordan works full time at his used furniture store. He quit his old job, which paid him $45,000 to run his own business. He also sold a $50,000 bond he owned so as to invest in the business, which was paying him $5,000 a year in interest. He used the money from that bond to buy all the initial equipment for his store. Last year, his total revenues was $110,000. He paid $42,000 for merchandise. His hourly labor costs totaled $30,000 for the year. He also paid $28,000 in rent on the building.

Using the above paragraph answer the following questions on Jordan's business for the year (give me numbers):

1. What is Jordan's fixed cost total?

2. What is Jordan's variable cost total?

3. What is Jordan's sunk cost total?

4. What is Jordan's explicit cost total?

5. What is Jordan's implicit cost total?

6. What is Jordan's accounting profit?

7. What is Jordan's economic profit?

8. Should Jordan definitely shut down his business? Why or why not?