1- Kristi, a pharmacist, is planning on opening her own pharmacy. Kristi's Pharmacy is expected to generate yearly reven

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1 Kristi A Pharmacist Is Planning On Opening Her Own Pharmacy Kristi S Pharmacy Is Expected To Generate Yearly Reven 1 (52.19 KiB) Viewed 12 times

1- Kristi, a pharmacist, is planning on opening her own pharmacy. Kristi's Pharmacy is expected to generate yearly revenue of $510,000. Kristi will run the pharmacy herself on full-time basis. Kristi's alternative employment options are as follows: - Continue to work as a senior medical representative for $50,000 per year. Accepts a research position in another company for $70,000 per year. Kristi shall invest $100,000 of her own savings in this project. In addition, she expects to spend $350,000 per year on purchasing drugs and cosmetics to sell them to her customers. She will also need to hire three employees: an assistant, an accountant, and a custodian, for whom the total salaries to be paid are expected to be $50,000 per year. Kristi owns the building in which her pharmacy is supposed to be. She could rent out the pharmacy-store space for $40,000 per year. Finally, the annual interest rate on bank savings accounts is currently 5%. Calculate Kristi's accounting profit and economic profit. In your opinion, should Kristi proceed with opening her own pharmacy? Justify your answer.