Question

Lisa quit her $21000-per-year job to start her own economic consulting firm. At the end of...

Lisa quit her $21000-per-year job to start her own economic consulting firm. At the end of her first year of operation, her total revenues were $148000. Her total explicit costs were $40000. What was her economic profit for the year? (Give response as a number, no commas, decimals, dollar signs, or otherwise.)

0 0
Add a comment Improve this question Transcribed image text
Answer #1

as as coud he earn t-Total Ruun以-Tofa/leaf. - TR a사 $1480 0 0-1 U0000十申21000 87000

Add a comment
Know the answer?
Add Answer to:
Lisa quit her $21000-per-year job to start her own economic consulting firm. At the end of...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Kate quit her job, where she earned $120,000 per year, to start her own financial consulting...

    Kate quit her job, where she earned $120,000 per year, to start her own financial consulting firm. She invested $80,000 of her own funds in furniture, computers, and other assets. During the first year of operation, the firm’s costs were $80,000 for rent on the office building, $420,000 for wages and salaries of employees, and $11,000 for supplies and utilities. The market value of the firm’s assets at the end of the year was $60,000. During the year, the firm...

  • Kate quit her job, where she earned $120,000 per year, to start her own financial consulting...

    Kate quit her job, where she earned $120,000 per year, to start her own financial consulting firm. She invested $80,000 of her own funds in furniture, computers, and other assets. During the first year of operation, the firm’s costs were $80,000 for rent on the office building, $420,000 for wages and salaries of employees, and $11,000 for supplies and utilities. The market value of the firm’s assets at the end of the year was $60,000. During the year, the firm...

  • Question 14 (1 point) Sarah quit her job where she earned $84,000 per year, to start...

    Question 14 (1 point) Sarah quit her job where she earned $84,000 per year, to start her own economic consulting firm. She invested $72,000 of her own funds in furniture, computers, and other assets. During the first year of operation, the firm's costs were $55,000 for rent on the office building, $220,000 for wages and salaries of employees, and $13,000 for supplies and utilities. The market value of the firm's assets at the end of the year was $64,000. During...

  • Violet quit her job on Bay street earning $91,000 a year to start her own financial...

    Violet quit her job on Bay street earning $91,000 a year to start her own financial planning business. She earned $171,000 in revenue. She paid herself $100,000 and spent $30,000 on materials, rent, client retention etc. Based on this information, what were her economic profit, economic costs and her accounting costs?

  • Suppose an engineer leaves her $100,000 per year job to start a consulting business. Assume she...

    Suppose an engineer leaves her $100,000 per year job to start a consulting business. Assume she borrows all of the money needed to start the business. In the first-year revenue is $500,000, the salaries paid to employees total $300,000 and the interest paid on the loan is $50,000. The economic profit of the firm is, therefore, $150,000. Is this true, false, or uncertain? If so please explain in detail why.

  • Rita quit her job as dentist where she earned $150,000/year and converted a house that she...

    Rita quit her job as dentist where she earned $150,000/year and converted a house that she owns into a museum for her collection of clocks. Before doing this, Rita had been renting the house out for $20,000/year. Rita hired 2 employees for her museum at a total cost of $50,000/year, and had to pay $10,000/year for utilities.   Her museum brought in revenues of $125,000 the first year. Someone even offered her $1,000,000 to purchase her entire collection of clocks. She...

  • 6. Peggy-Sue loves to bake cookies and recently left her job at Cookie Monster, Inc., (making...

    6. Peggy-Sue loves to bake cookies and recently left her job at Cookie Monster, Inc., (making $125,000 per year) to start her own cookie-baking business. Her annual costs would include $40,000 for labor, $10,000 for rent, $35,000 for ingredients, and $5,000 for utilities. She withdrew $100,000 of her own savings to invest in the operation, which had been earning 10 percent interest per year. a. List Peggy-Sue’s total costs of operating her own cookie business, and specifically indicate which items...

  • Lydia is trained as a statistician. She has a job offer with a business consulting company...

    Lydia is trained as a statistician. She has a job offer with a business consulting company where she will earn $100,000 a year. However, she wants to start her own business consulting firm. She expects the firm to generate annual revenues of $300,000. Her expenses from the consultancy is given in the table below. What is her economic profit? Expense Item Annual Cost in dollars Rent for office space $60,000 Compensation for Hired Employees $40,000 Software Applications $20,000 o А...

  • Karen is offered a job with a salary of $70,000, which she turns down to start...

    Karen is offered a job with a salary of $70,000, which she turns down to start her own business. She uses $20,000 of her own savings to help start the business, savings that had been providing her a return of $1,000 per year. Over her first year in business, Karen collects total revenue of $180,000 and must cover explicit costs of $105,000. During her first year in business, Karen's accounting profit is _____, and her economic profit is _____.

  • please answer all 4 please! thank you! Alex quit his job at State University where he...

    please answer all 4 please! thank you! Alex quit his job at State University where he earned S45,000 a year to start extreme gaming software business. To start the business, he cashed in $100,000 in bonds that was earning him 10 percent interest annually to buy equipment. His forgone entrepreneurial income was $5,000 a year. In the first year, the firm sold 11,000 units of software at $75 for each unit. Of the $75 per unit, S55 goes for the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT