Before Sarah quit her job as a carpenter, she was earning $35,000 per year. She rented a building for $12,000 per year and opened a cabinet shop.

  • How much revenue will the business have to earn in order to break even in terms of business profit?
  • How much revenue will the business have to earn in order to break even in economic terms?
  • Suppose that Sarah buys the building. Now how much will the business have to earn in order to break even in economic terms?
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