Family Adventure’s accounting profit = 280,000 - (140,000+25,000+10,000+5,000) = $100,000
The economic profit will be less than the accounting profit because it will also take into account the opportunity costs of the time and resources that have been used in the business. So the economic profit = Accounting profit - The opportunity cost of doing business( the salary that could have been earned from the job) - The interest that would have been received from the savings account
= $100,000 - $100,000 - (0.1*80000)
= -$8000
So the economic profit will be -$8000.
USLUIT (2 points) See page 246 Although Goldman Sachs paid Heather $100,000.00 per year, she was...
Although Goldman Sachs paid Heather $110,000.00 per year, she was not satisfied with her job. She had loved going white-water rafting and skiing with her family in Utah since she was a little girl. So last year, she decided to open her own business: Family Adventures. During the summer, she takes families on different white-water trips, and in the winter, she leads clients on skiing trips. To start her business, Heather borrowed $100,000 from a bank and used $100,000.00 of...
Although Goldman Sachs paid Heather $90,000.00 per year, she was not satisfied with her job. She had loved going white-water rafting and skiing with her family in Utah since she was a little girl. So last year, she decided to open her own business: Family Adventures. During the summer, she takes families on different white-water trips, and in the winter, she leads clients on skiing trips. To start her business, Heather borrowed $100,000 from a bank and used $120,000.00 of...
Although Goldman Sachs paid Heather $120,000.00 per year, she was not satisfied with her job. She had loved going white-water rafting and skiing with her family in Utah since she was a little girl. So last year, she decided to open her own business: Family Adventures. During the summer, she takes families on different white-water trips, and in the winter, she leads clients on skiing trips. To start her business, Heather borrowed $100,000 from a bank and used $90,000.00 of...
34 Question ( point) Although Goldman Sachs paid Heather $100000.00 per year, she was not satisfied with her job She had loved going white water rafting and skiing with her family in Utah since she was a little girl. So last year, she decided to open her own business: Family Adventures. During the summer, she takes familles on different whlte-water trips, and in the winter, she leads clients on skiing trips. To start her business, Heather borrowed $100,000 from a...
A semiprofessional baseball team near your town plays two home games each month at the local baseball park. The team splits the concessions 50/50 with the city but keeps all the revenue from ticket sales. The city charges the team $100 each month for the three-month season. The team pays the players and manager a total of $1000 each month. The team charges $10 for each ticket, and the average customer spends $8 at the concession stand. Attendance averages 30...