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Mike, a baker, rents a building from Joshua to operate a bakery and pays R1,500 ...
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Mike, a baker, rents a building from Joshua to operate a bakery and pays R1,500 per month for its use. He employs two workers, paying each worker R1,200 per month to prepare dough and operate the baking machinery. The machinery is hired from David at a cost of R1,000 per month. In addition, Mike spends R1,000 per month on baking ingredients. From the sale of baked goods, Mike earns R10,000 in revenue per month. After covering all expenses, he is left with a profit of R4,100 per month. Use this scenario to identify the factors of production and answer the following question. Based on the information above, which amount represents the reward for entrepreneurship after accounting for the other factor payments?
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