Homework Answers
Economic profit = Revenue-Total Cost
Total Cost = Explicit Cost+Implicit Cost
Explicit Cost = 75000
Implicit Cost = Salary forgone+ annual interest rate forgone = 30000+10000 = 40000
So, Economic Profit = 200000 - (75000+40000) = 85000
Zippys economic profit in the first year is $85000
Add Answer to:
Zippy is earning $30,000 per year working for Joe's Car Repair. He also has savings of...
Zippy is earning $40,000 per year working for Joe's Car Repair. He also has savings of...
Zippy is earning $40,000 per year working for Joe's Car Repair. He also has savings of $150,000, on which he is eaming 10% annual interest. He decides to leave Joe's Car Repair to invest his savings in starting his own car repair business In the first year, Zippy's Speedy Car Repair cars revenues of $250,000 and has explicit costs of $150,000 Zippy's economic profit (or loss) in the first year is $ (Round your answer to the nearest dolor.)
Joe quits his computer programming job, where he was earning a salary of $65,000 per year,...
Joe quits his computer programming job, where he was earning a salary of $65,000 per year, to start his own computer software business in a building that he owns and was previously renting out for $20,000 per year. In his first year of business he has the following expenses: salary paid to himself, $42,500; rent, $0; and other expenses, $30,000. Find the accounting cost and the economic cost associated with Joe's computer software business. (Enter numeric responses using an integer.)...
Joe quits his computer programming job, where he was earning a salary of $50 comma 000...
Joe quits his computer programming job, where he was earning a salary of $50 comma 000 per year, to start his own computer software business in a building that he owns and was previously renting out for $30,000 per year. In his first year of business he has the following expenses: salary paid to himself, $47,500; rent, $0; and other expenses, $25,000. Find the accounting cost and the economic cost associated with Joe's computer software business. The accounting cost of...
Jim resigns from his job, from which he was earning $40,000 per year, and then uses...
Jim resigns from his job, from which he was earning $40,000 per year, and then uses his own savings as the only source of capital to start a new firm. In the first year, his revenue is $120,000 and the total explicit cost is $60,000. Jim does not want to reveal how much own-savings he uses in his business, but implies that if the interest rate was higher than 5%, he would prefer not to start his own business. Refer...
1. Jack quits his $200,000 a year job at Doctors Medical Center in order to set...
1. Jack quits his $200,000 a year job at Doctors Medical Center in order to set up a Graduate College of Science and Technology. He invests his savings of $150,000 (which had been earning 2 percent a year) in starting the College. He also borrowed $700,000 from the Bank of the East at 5 percent interest a year. Jack located his College in a building he owned and had previously been renting to Car Dealers Inc. for $120,000. Jack estimates...
Case 2 Jim resigns from his job, from which he was earning $40,000 per year, and...
Case 2 Jim resigns from his job, from which he was earning $40,000 per year, and then uses his own savings as the only source of capital to start a new firm. In the first year, his revenue is $120,000 and the total explicit cost is $60,000. Jim does not want to reveal how much own- savings he uses in his business, but implies that if the interest rate was higher than 5%, he would prefer not to start his...
Ricky quits his job earning $150,000/year and converts a house that he owns into a museum...
Ricky quits his job earning $150,000/year and converts a house that he owns into a museum for his large collection of antique clocks. Before this, Ricky had been renting the house out for $20,000/year. Ricky hired 2 employees for his museum at a total cost of $50,000/yr, and had to pay $10,000/yr for utilities. His museum was a huge hit and brought in revenues of $125,000 the first year. One antique clock enthusiast even offered him $1,000,000 to purchase his...
D Question 8 1 pts Case 2 Jim resigns from his job, from which he was earning $40,000 per year, and then uses his o...
D Question 8 1 pts Case 2 Jim resigns from his job, from which he was earning $40,000 per year, and then uses his own savings as the only source of capital to start a new firm. In the first year, his revenue is $120.000 and the total explicit cost is $60,000. Jim does not want to reveal how much own-savings he uses in his business, but implies that if the interest rate was higher than 5%, he would prefer...
Robert gave up his job earning $70,000/year and converts a house that he owns into an...
Robert gave up his job earning $70,000/year and converts a house that he owns into an art museum. Before opening his museum, he had been renting the house out for $25,000/year. Robert hired two employees for his museum at a total cost of $50,000/yr, and had to pay $10,000/yr for utilities. The museum brought in total revenues of $100,000 the first year. Someone even offered him $900,000 for one of his paintings but he declined this offer. 1. What is...
Takashi plans to save $30,000 per year until he retires. his first savings contribution to his...
Takashi plans to save $30,000 per year until he retires. his first savings contribution to his retirement account is expected in 1 year from today. Takashi plans to retire in 6 years from today, immediately after making his last $30,000 contribution to his retirement account. he then plans to be retired for 6 years. Takashi expects to earn 8.0% per year in his retirement account. both before and during his retirement. If takashi receives equal annual payments from his retirement...
Zippy is earning $40,000 per year working for Joe's Car Repair. He also has savings of $150,000, on which he is eaming 10% annual interest. He decides to leave Joe's Car Repair to invest his savings in starting his own car repair business In the first year, Zippy's Speedy Car Repair cars revenues of $250,000 and has explicit costs of $150,000 Zippy's economic profit (or loss) in the first year is $ (Round your answer to the nearest dolor.)
Joe quits his computer programming job, where he was earning a salary of $65,000 per year, to start his own computer software business in a building that he owns and was previously renting out for $20,000 per year. In his first year of business he has the following expenses: salary paid to himself, $42,500; rent, $0; and other expenses, $30,000. Find the accounting cost and the economic cost associated with Joe's computer software business. (Enter numeric responses using an integer.)...
Jim resigns from his job, from which he was earning $40,000 per year, and then uses his own savings as the only source of capital to start a new firm. In the first year, his revenue is $120,000 and the total explicit cost is $60,000. Jim does not want to reveal how much own-savings he uses in his business, but implies that if the interest rate was higher than 5%, he would prefer not to start his own business. Refer...
1. Jack quits his $200,000 a year job at Doctors Medical Center in order to set up a Graduate College of Science and Technology. He invests his savings of $150,000 (which had been earning 2 percent a year) in starting the College. He also borrowed $700,000 from the Bank of the East at 5 percent interest a year. Jack located his College in a building he owned and had previously been renting to Car Dealers Inc. for $120,000. Jack estimates...
Case 2 Jim resigns from his job, from which he was earning $40,000 per year, and then uses his own savings as the only source of capital to start a new firm. In the first year, his revenue is $120,000 and the total explicit cost is $60,000. Jim does not want to reveal how much own- savings he uses in his business, but implies that if the interest rate was higher than 5%, he would prefer not to start his...
D Question 8 1 pts Case 2 Jim resigns from his job, from which he was earning $40,000 per year, and then uses his own savings as the only source of capital to start a new firm. In the first year, his revenue is $120.000 and the total explicit cost is $60,000. Jim does not want to reveal how much own-savings he uses in his business, but implies that if the interest rate was higher than 5%, he would prefer...
Most questions answered within 3 hours.
-
Suppose that on a temperature scale X, water boils at 203.0°X
and freezes at -105.7°X. What...
asked 40 minutes ago -
BaS crystallizes in a cubic unit cell with S2- ions on each
corner and each face....
asked 1 hour ago -
A. 0≤P(Oi)≤10≤P(Oi)≤1 for each i
B. P(Oi)≤0P(Oi)≤0
C. P(Oi)=1+P(OCi)P(Oi)=1+P(OiC)
D. P(Oi)≥1P(Oi)≥1
If an experiment consists of...
asked 2 hours ago -
A battery has an emf of 9.20V and an internal resistance of 1.20
ohm. a)What resistance...
asked 2 hours ago -
The area of an elastic circular loop decreases at a constant
rate, dA/dt = −6.60×10−3 m2/s...
asked 3 hours ago -
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 5 hours ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 5 hours ago -
implement a program that reads a number of rows and a symbol.
The program will draw...
asked 5 hours ago -
Assume that when adults with smartphones are randomly selected,
45% use them in meetings or classes....
asked 5 hours ago -
Determine the number of formula units of
Na2SO4 and moles of oxygen contained in 8.11
moles...
asked 5 hours ago -
Explain in steps on the following code
What would be the output when executed
using System;...
asked 5 hours ago -
Given the information in the table, which of the following
statements is CORRECT?
Stock A
Stock...
asked 5 hours ago