Question susan works for a large marketing firm where she earns $$ \$ 120,000 $$ per year. Susan wants to quit her job and start her own marketing firm. She estimates that her total costs on direct business expenses will be $$ \$ 30,000 $$. Susan will quit her job and start her own marketing firm only if she can earn $$ \$ 25,000 $$ in economic profit. What is the minimum total revenue Susan must be able to earn for her to quit her job?

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1. Define the economic profit as the total revenue minus both the explicit business expenses and the opportunity cost (the salary she gives up):

$$
   \text{Economic Profit} = \text{Total Revenue} - (\text{Direct Business Expenses} + \text{Opportunity Cost})
   $$

2. Given:
   - Susan's forgone salary (opportunity cost): $$ \$120,000 $$
   - Direct business expenses: $$ \$30,000 $$
   - Required economic profit: $$ \$25,000 $$

3. Substitute these values into the economic profit equation:

$$
   25,000 = \text{Total Revenue} - (30,000 + 120,000)
   $$

4. Simplify the equation:

$$
   25,000 = \text{Total Revenue} - 150,000
   $$

5. Solve for Total Revenue:

$$
   \text{Total Revenue} = 25,000 + 150,000 = 175,000
   $$

Thus, the minimum total revenue Susan must earn to quit her job is $$ \$175,000 $$.
Susan needs to earn at least \$175,000 in total revenue to quit her job and achieve an economic profit of \$25,000.

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