Homework Answers
ANSWER:
1) ACCOUNTING PROFIT = REVENUE - EXPLICIT COSTS = $75,000 - $5,000 = $70,000
2) Economic profit = Revenue - explicit costs - inplicit costs = $75,000 - $5,000 - $60,000 = $10,000
3) Economic profit = Accounting profit - implicit costs = $60,000 - $60,000 = 0
4) Accounting profit = revenue - explicit costs = $60,000 - $5,000 = $55,000
5) Economic profit = revenue - explicit costs - implicit costs = $60,000 - $5,000 - $60,000 = -$5,000
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Use the information below to answer questions 1 through 5. Assume you gave up a $60,000 per year job at an accountin...
(Figure #3) You are working as an economist at a consulting firm earning $60,000 per year....
(Figure #3) You are working as an economist at a consulting firm earning $60,000 per year. The next best alternative would be opening your own window-cleaning business. In the business, your revenue would be $100,000 per year. Additionally, you would spend $20,000 on supplies and marketing, and $10,000 per year on payments for a van that would be used in the business. From the previous calculations of Accounting Profit, Economic Profit, and Opportunity Cost, the best alternative is to: Select...
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You quit your job that pays $60,000 in order to open your own business. If your...
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Show me the formulas for explicit cost, implicit cost, accouting profit, and economic profit. Tell me what to do for pr...
Show me the formulas for explicit cost, implicit cost,
accouting profit, and economic profit. Tell me what to do for
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Show me the formulas for explicit cost, implicit cost, accouting profit, and economic profit. Tell me...
Show me the formulas for explicit cost, implicit cost,
accouting profit, and economic profit. Tell me what to do for
problems a-d.
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Show me the formulas for explicit cost, implicit cost,
accouting profit, and economic profit. Tell me what to do for
problems a-d.
ASSUME THAT YOU OWN AN ENGINEERING FIRM THAT HAS THE FOLLOWING COST AND REVENUE INFORMATION FOR LAST YEAR: ........ -total revenue from operations $650,000 $650, 165,000 -wages of clerks and assistants -$100,000 of your money is invested in the firm; it could earn 5% interest if invested elsewhere (.05 x $100,000) . 5,000 -cost of inventory, supplies, and...
Show me the formulas for explicit cost, implicit cost,
accouting profit, and economic profit. Tell me what to do for
problems a-d.
CTOWT ASSUME THAT YOU OWN AN ENGINEERING FIRM THAT HAS THE FOLLOWING COST AND REVENUE INFORMATION FOR LAST YEAR: Cre 6 -total revenue from operations $650,000 -wages of clerks and assistants 165,000 -$100,000 of your money is invested in the firm; it could earn 5% interest if invested elsewhere (.05 x $100,000) 5,000 cost of inventory, supplies, and...
Use the information below to answer the following questions XYZ commenced operations on January 1st 2013 The unadjusted Trial Balance for the first year of operations is given below XYZ limite d Unadjusted Trial Balance for the year ended 12/31/2013 Cash Supplies Accounts receivable Equipment Notes Payable Contributed Capital Revenue Wages Expenses Other Expenses Total 30,000 10,000 30,000 80,000 60,000 40,000 100,000 40,000 10,000 200,000 200,000 Notes: Supplies as at 12/31/2013 was determined to be $2,000 Equipment was purchased on...
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please answer all 4 please! thank you!
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