Hello, My name is Cora! Can I sell you any jared pickles?
From my ledgers your revenue is $80,000 minus $56,000 in expenses equals $24,000. Your calculated depreciation is $5,000. That leaves you $19,000 in profit!
My economist skills say that your $80,000 minus your passed up salary of $50,000, expenses of $56,000, and depreciation of $5,000 gives you making $-31,000.
Let us talk business!
By my expertise you should remain open and keep gaining that profit little by little!
Thinking logically here, Cora, you should consider closing down.
I am in such a pickle!
Cora owns a Pickling company, it is the end of the month so Cora brings in her accountant and economist to talk over business matters.
Cora's sales for the month were $80,000 and expenses were $56,000. After being open for one month Cora considers staying open or shutting down and going back to her old job as a chief down the street making $50,000.
In the end Cora is left with the confusion of this question by what was said to her in the conference.