Megan used to work at the local pizzeria for $15,000 per year but quit in order to start her own deli. To buy the necessary equipment, she withdrew $20,000 from her inheritance (which paid 8 percent interest). Last year she paid $25,000 for ingredients and $500 per month rent but had revenue of $50,000. She asked her dad the accountant and her mom the economist to calculate her costs for her.
A. Dad says her cost is $25,000 and Mom says her cost is $16,600.
B. Dad says her cost is $31,000 and Mom says her cost is $35,000.
C. Dad says her cost is $9,000 and Mom says her cost is $2,400.
D. Dad says her cost is $31,000 and Mom says her cost is $47,600.
Answer: D
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