Zach has the following information to evaluatelong dashhis c

Zach has the following information to evaluatelong dashhis current salary of $ 79 comma 000 versus total revenues of $ 130 comma 000 and expenses of $ 69 comma 000 from starting a new business. How much is the opportunity cost associated with staying at his current? job?

Solution

Answer is $ 61000

Explanation:

For staying at his current job, the person has to forego the net income which he would have derived from the business.

The income which could be derived is as under:

Net revenue: $ 130,000

Less: Expenses: $ 69,000

Net income: $61,000