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Business, 09.12.2021 21:50 rhettperkins

2. Amaa received a job offer from a reputed company. The company agreed to pay a monthly salary of Rs. 55 000. But, she refused it because she wanted to start her own business. She used following resources owned by her in her business; Resource Lost income 04 machines 01 building Rs. 5,000 of rent per machine Rs. 10,000 building rent I Rs. 15,000 rent 2% monthly savings interest 01 vehicle Rs. 50,000 of savings Amaa's monthly expenses, as recorded in her financial records were as follows: Remuneration for employees Rs. 55 000 Material and others Rs. 35 000 Other expenses Rs. 55 000 Her monthly income was Rs. 475,000 1. II. Calculate the economic profit or loss of Amaa. (04 Marks) You as an economist, would you recommend her to expand her current business activities? Justify you answer. (03 Marks)

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