Barney decides to quit his job as a corporate accountant, which pays $14,000 a month, and...
Barney decides to quit his job as a corporate accountant, which pays $14,000 a month, and goes into business for himself as a certified public accountant.
He runs his business from his converted garage apartment, which he could rent out for $320 a month if he wasn’t using it as a home office. He must purchase office supplies worth $70 a month, and his monthly electricity bill has increased by $50 now that he is working out of his home office.
After six months of working from home, Barney has earned an average of $16,000 per month.
Instructions: Enter your answers as a whole number.
a. What are Barney’s average monthly accounting profits?
$
b. What are Barney’s average monthly economic profits?
$
Homework Answers
a) Average monthly accounting profits
= TR-TC
= (16000-120) = 15880
b) Average monthly economic profits
= TR-TC-(Opportunity costs)
= 15880-(14000+320)
= 1560
Add Answer to:
Barney decides to quit his job as a corporate accountant, which
pays $14,000 a month, and...
Barney decides to quit his job as a corporate accountant, which pays $12,000 a month, and...
Barney decides to quit his job as a corporate accountant, which pays $12,000 a month, and goes into business for himself as a certified public accountant. He runs his business from his converted garage apartment, which he could rent out for $325 a month if he wasn’t using it as a home office. He must purchase office supplies worth $80 a month, and his monthly electricity bill has increased by $60 now that he is working out of his home...
Use the following information to answer the next question. Barney decides to quit his job as...
Use the following information to answer the next question. Barney decides to quit his job as a corporate accountant, which pays $12,058 a month, and goes into business for himself as a certified public accountant. He runs his business from his converted garage apartment, which he could rent out for $458 a month if he wasn't using it as a home office. He must purchase office supplies worth $98 a month, and his monthly electricity bill has increased by $53...
Production Problem Set i Saved Help Save & Exit Submit Explicit and Implicit Costs Exercise 2...
Production Problem Set i Saved Help Save & Exit Submit Explicit and Implicit Costs Exercise 2 (Algo) 2 1 points Barney decides to quit his job as a corporate accountant, which pays $12,000 a month, and goes into business for himself as a certified public accountant. He runs his business from his converted garage apartment, which he could rent out for $315 a month if he wasn't using it as a home office. He must purchase office supplies worth $85...
2. Economies of scale refers to when: 6. Suppose Winston's annual salary as an accountant is...
2. Economies of scale refers to when:
6. Suppose Winston's annual salary as an accountant is $60,000,
and his financial assets generate $4,000 per year in interest. One
day, after deciding to be his own boss, he quits his job and uses
his financial assets to establish a consulting business, which he
runs out of his home. To run the business, he outlays $8,000 in
cash to cover all the costs involved with running the business, and
earns revenues of...
4_._ _Average Variable Costs and the Shutdown Decision Gob (pronounced Job) runs a banana stand on the oceanfront boardw...
4_._ _Average Variable Costs and the Shutdown Decision Gob (pronounced Job) runs a banana stand on the oceanfront boardwalk in Newport Beach, CA. He sells frozen bananas at a price of $2.50 per unit. He cannot raise the price without losing all his sales to a nearby competitor. Current sales are 90 frozen bananas per day. He buys bananas at a wholesale price of $0.50 per unit. The cost of freezing bananas is negligible. Operating the banana stand requires a...
2. Calculating costs Yvette is working for an advertising firm making $50,000 per year but considers...
2. Calculating costs Yvette is working for an advertising firm making $50,000 per year but considers starting her own advertising company. Yvette has determined that to launch the business, she needs to invest $80,000 of her own funds. The annual cost of running the business will include $75,000 for the rent of the office space, $190,000 for employee wages, and $6,000 for materials and utilities. Yvette plans to manage the business, which means that she will have to quit her...
1. Mr A Cheung was employed by an investment company as an accountant on the following...
1. Mr A Cheung was employed by an investment company as an accountant on the following terms: a. 2 years contract from 1 July 2017 to 30 June 2019 b. Monthly salary: $25,000 per month plus one month bonus payable on 31 December every year (no pro rata). C. Contract gratuity of $75,000 payable upon completion of the contract. He did not apply to have the gratuity spread back. During his employment with the investment company, he also received the...
Bath Salts Online Store 1. Business Objective: Owners want to expand customer base and increase profits...
Bath Salts Online Store 1. Business Objective: Owners want to expand customer base and increase profits while still keeping a relatively low overhead. a. Expand customer base Create online store to supplement their Etsy account b. Increase product output buy more materials to qualify for better wholesale price 2. Business Case: Bath Salts Boutique has existed as an LLC (Limited Liability Company) for the last 5 years. To keep costs down owners Craig and Brooke have not invested...
2. Wendy’s friend Bob worked for the same software company but they didn’t renew his contract....
2. Wendy’s friend Bob worked for the same software company but they didn’t renew his contract. Now he’s applying for jobs, but can’t collect unemployment benefits because he wasn’t technically an employee. Bob is: Not in the labor force but "marginally attached" Unemployed Not in the labor force and not "marginally attached" 3. Jim works in construction, but his project got shut down for a week because of a snowstorm. As a result, Jim didn’t get paid. He’ll go back...
you have been called in to help Sarah Singer who has operated a part-time graphic design...
you have been called in to help Sarah Singer who has operated a part-time graphic design business from her home. Her accountant has decided to quit working for her and Singer has decided she needs a more organized approach to keeping his accounting records. (Singer has kept his accounting records in a big file cabinet). Singer has decided to move to a rented office space and is planning to operate the business on a full-time basis. The business will be...
Use the following information to answer the next question. Barney decides to quit his job as a corporate accountant, which pays $12,058 a month, and goes into business for himself as a certified public accountant. He runs his business from his converted garage apartment, which he could rent out for $458 a month if he wasn't using it as a home office. He must purchase office supplies worth $98 a month, and his monthly electricity bill has increased by $53...
Production Problem Set i Saved Help Save & Exit Submit Explicit and Implicit Costs Exercise 2 (Algo) 2 1 points Barney decides to quit his job as a corporate accountant, which pays $12,000 a month, and goes into business for himself as a certified public accountant. He runs his business from his converted garage apartment, which he could rent out for $315 a month if he wasn't using it as a home office. He must purchase office supplies worth $85...
2. Economies of scale refers to when:
6. Suppose Winston's annual salary as an accountant is $60,000,
and his financial assets generate $4,000 per year in interest. One
day, after deciding to be his own boss, he quits his job and uses
his financial assets to establish a consulting business, which he
runs out of his home. To run the business, he outlays $8,000 in
cash to cover all the costs involved with running the business, and
earns revenues of...
2. Calculating costs Yvette is working for an advertising firm making $50,000 per year but considers starting her own advertising company. Yvette has determined that to launch the business, she needs to invest $80,000 of her own funds. The annual cost of running the business will include $75,000 for the rent of the office space, $190,000 for employee wages, and $6,000 for materials and utilities. Yvette plans to manage the business, which means that she will have to quit her...
1. Mr A Cheung was employed by an investment company as an accountant on the following terms: a. 2 years contract from 1 July 2017 to 30 June 2019 b. Monthly salary: $25,000 per month plus one month bonus payable on 31 December every year (no pro rata). C. Contract gratuity of $75,000 payable upon completion of the contract. He did not apply to have the gratuity spread back. During his employment with the investment company, he also received the...
Most questions answered within 3 hours.
-
From the literature (reference your sources): What are the
lattice parameters of calcite and aragonite? Why...
asked 37 minutes ago -
Your system is rejecting the question am asking which is
preceded by a case study. It...
asked 42 minutes ago -
3. On January 2, 2000, Larry creates a trust with himself as
trustee. Larry as trustee...
asked 39 minutes ago -
A member of the volleyball team spikes the ball. During this
process, she changes the velocity...
asked 46 minutes ago -
Are adult gamers less likely to use a gaming console (Xbox,
PlayStation, Wii, etc...) than teen...
asked 1 hour ago -
The University of
Texas recently reported that 43% of college students aged 18-24
would spend their...
asked 1 hour ago -
The length of stay at a specific emergency department in
Phoenix, Arizona, in 2009 had a...
asked 1 hour ago -
. Please give the mechanism for this type of problem. Step by
Step
The toxin that...
asked 1 hour ago -
If you have a 1M stock solution and you want to dilute 1 :10
with water,...
asked 1 hour ago -
In a load instruction, the effective address is obtained by
A) Retriving the address from a...
asked 1 hour ago -
Use the following information to answer this question.
Windswept, Inc. 2017 Income Statement ($ in millions)...
asked 1 hour ago -
A mutual fund salesperson has arranged to call on four people
tomorrow. Based on past experience...
asked 1 hour ago