Janet spends $20,000 per year on painting supplies and storage space. She recently received two job offers from a famous marketing firm- one offer were for $100,000 per year, and the other was for $90,000. However, she turned both jobs down to continue a painting career. If Janet sells 25 paintings per year at a price of $8,000 each: a. What are her accounting profits? Show your steps leading to your answer b. What are her economic profits
Q: Ahmed is considering his plans for the coming weekend. He is currently working as a marketing…
A: An incremental cost is the difference in total costs as the result of a change in some activity.…
Q: Distinguish among accounting profit, economic profit, and normal profit. Does accounting profit or…
A: The difference between the revenue earned from the sale of a product and the total cost of…
Q: You are the chief financial officer for a firm that sells digital music players. Your firm has the…
A: Marginal cost: It is the cost of producing an extra unit.
Q: Blake decides to spend a spring day in the field planting wheat with some help from some workers he…
A: The Accounting profits is calculated as Total Revenues - Total cost (explicit cost) being incurred…
Q: ABC CO. is considering replacing a production line with a new, more productive one. You are given…
A: Profit of existing production = $100000 Salvage value of exisiting machine = $40000 Profit from new…
Q: you have been working as a manager of a fashion store. You saved 50,000 and you decided to use the…
A:
Q: In the graph below, you can see the iso-cost curve and the iso-quant curve for the firm to produce q…
A: the iso-cost curve is his budget line. An iso-cost line is a graph that depicts numerous input…
Q: Barney decides to quit his job as a corporate accountant, which pays $12,000 a month, and goes into…
A: Costs are the expenses that firms incur in the production of goods and services. A firm can incur…
Q: capital and $162 million on materials. The firm's factory sits on land owned by the firm that could…
A: An economic profit is the difference between the revenue a commercial entity has received from its…
Q: Microeconomic Chapter Eight Distinguish between a firm's explicit costs and its implicit costs and…
A: Answer: Explicit cost: It is the payment made to outsiders for hiring factor services. It involves…
Q: Edith is the owner and manager of a small coffee shop that employs three workers who use the shop’s…
A: Given, In the coffee shop, there are 3 workers and 1 coffee machine. If there is an increasing…
Q: Explain whether you agree or disagree with the following statement: "Value is maximized when the…
A: The rate that depicts the average interest rate that would be charged from a variety of providers to…
Q: We know two friends that have decided to work together in a start-up business in Ithaca; they want…
A: The profit which is based on the explicit cost is the accounting profit. The total revenue is…
Q: Explain how the stages of production are determined. Give information about the shape and slope of…
A: A production function shows the unique relationship between inputs and outputs. It shows the maximum…
Q: Your aunt is thinking about opening a hardware store.She estimates that it would cost $500,000 per…
A: opportunity cost is what is sacrificed when a person select one option over another one. it is a…
Q: A young chef is considering opening his own sushi bar. To do so, he would have to quit his current…
A: Implicit cost is the opportunity cost.
Q: Alyssa runs a "Dessert of the month" delivery service. To operate her business each year, she spends…
A: Explicit costs are the expenditures incurred by an individual or a business out of its own pockets.…
Q: MC ATC AVC AFC 40 70 80 90 Quantity Costs
A: Diminishing returns begin where MC curve starts rising or MP curve starts to fall. Most productive…
Q: Imagine yourself to be the owner of a large tract of agricultural land. You want the land to be…
A: Fixed rent contract In fixed rent contract , landlord charges fix sum of money, per year or per…
Q: Explain the difference between accounting and economic profit. Give two examples of when they…
A: Accounting profit means that profit which is earned after the explicit costs are deducted from…
Q: Distinguish between accounting profit, economic profit, and normal profit. Does accounting profit…
A:
Q: Edith is the owner and manager of a small coffee shop that employs three workers who use the one…
A: Edith is not right in her view. The reason for this is explained in the next step.
Q: Edith is the owner and manager of a small coffee shop that employs three workers who use the shop’s…
A: When the variable factors of production-those whose count can be increased or decreased are employed…
Q: What must an entrepreneur do to earn a profit? How do the actions of firms earning profits influence…
A:
Q: Alex Kingsford is a mechanical engineer working for ABC Engineering in Melbourne. Alex owns a…
A: Alex Kingsford is managing his home-based catering business and is also employed in ABC engineering…
Q: “In the short run, a company has to operate as efficient as possible to accomplish the profit…
A: Please repost your question, as we are allowed to answer only 2 questions. a In achieving the short…
Q: Alyssa runs a "Dessert of the month" delivery service. To operate her business each year, she spends…
A: Explicit cost = 30,000+50,000+5000 = 85,000 Implicit cost = 50,000+15,000+2000 = 67,000
Q: What must an entrepreneur do to earn a profit? How do the actions of firms earning profits influence…
A: An entrepreneur should always remember that its revenue should be higher than its cost in order to…
Q: Kendall is a successful data analyst working at Amazon. She had one passion for all these years, she…
A: a) Accounting profit: The difference between Total revenues and explicit costs involved. Total…
Q: How does rising organic composition of capital threaten the rate of profit?
A: Historically, there have been a lot of economic theories stating the requirements for the…
Q: Joe runs a vegetable stall in the market building. Joe has no skills, no job experience, and no…
A: Sellers must incur costs while producing goods and services by making a variety of factor payments…
Q: The way in which accountants and economists analyse the costs of a firm differ. Discuss the…
A: Costs are the expenses being incurred for running a business. There are different types of costs…
Q: Can a firm earn an economic loss and an accounting profit at the same time?
A: The measure that depicts distribution of income to owner in a profitable process of production in…
Q: Sam decides to quit his job as a corporate accountant, which pays $11,000 a month, and goes into…
A: Accounting profit is the profit which is known as net income which is earned after the reducing all…
Q: Refer to the seenario below to answer the questions. Upon graduating with an accounting degree, you…
A: Annual economic cost = explicit cost + implicit cost = rent & supplies + salary given up =…
Q: Ronald runs a small pottery firm. He hires one helper at $12,000 per year, pays annual rent of…
A: Economic profit is cash procured subsequent to considering express and understood costs. Accounting…
Q: A student once said she 'didn't believe in sunk costs. She meant that the idea that 'some costs are…
A: Sunk cost refers to the costs that has been paid already and cannot be recovered. That means it is…
Q: Tom runs a shoe-shine stand at the airport. Tom has no skills, no job experience, and no alternative…
A: Explicit cost is the direct out of pocket expense for a firm for example wages and salaries, rent,…
Q: year, and the other was for $90,000. However, she turned both jobs down to continue a painting…
A: here we calculate the accounting profits and economic profits by following method
Q: Manisha could work for another firm making $10,000 per month, but she decides to open her own…
A:
Q: Blake decides to spend a spring day in the field planting wheat with some help from some workers he…
A: Total revenue of Blake = $870 Blake incurred renting cost of tractor = $50 Fertilizer cost = $150…
Q: ABC CO. is considering replacing a production line with a new, more productive one. You are given…
A: Under marginal analysis, the company will evaluate the cost and benefit that it faces as the result…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Upgrading an Organization’s ComputersYour organization earns $50 million in annual sales, has 500 employees, andplans to acquire 250 new mobile computers this year along with another 250next year. The goal is to issue every employee a company-owned computer,which they can use at work and at home. The computers will be loaded withantivirus software and productivity software to meet each employee’s business needs. Your organization has decided it will purchase the computersfrom the same manufacturer to obtain a quantity purchase discount. To theextent possible, the goal is to have the same hardware and software foreveryone to simplify the troubleshooting and support of the computers. Thechief financial officer has asked you to lead a project team to define users’computer hardware needs and recommend the most cost-effective solutionfor meeting those needs. Critical Thinking Questions1. Who else (role, department) and how many people would you select to bea member of the team? How would…2 You run a business selling used hand tools. The rent on your building is $1400/month. Utilities average $600 month. Your average cost to buy your used hand tools from a wholesaler is $9.5/tool. You spend S0.50/tool to package and individually price them. You have two employees in your store during the opening hours that sell the tools. Each employee gets a salary of $12/hour. Your store is open 10 hours/day, every day of the week. Over the course of a year, this averages out to 30 days'month. The average selling price for a used tool is $22. How many tools per month must be sold to make $4000 profit each month.Savion is restoring a car and has already spent $4, 000 on the restoration. He expects to be able to sell the car for S 5800. Savion discovers that he needs to do an additional $2, 400 of work to make the car worth $5, 800 to potential buyers. He could also sell the car now, without completing the additional work, for $3, 800. What should he do? a. He should complete the additional work and sell the car for $5, 800. b. He should keep the car since it wouldn't be rational to spend $6, 400 restoring a car and then sell it for only $5,800. c. He should sell the car now for $3,800. d. It does. not matter which action he takes since the outcome will be the same either way.
- Pat used to work as an aerobics instructor at the local gym earning $35,000 a year. Pat quit that job and started working as a personal trainer. Pat makes $50,000 in total annual revenue. Pat's only out- of-pocket costs are $12,000 per year for rent and utilities, $1,000 per year for advertising and $3,000 per year for equipment. Please enter your answers as whole numbers with no decimal places (ie. 5000 or $5000 not 5000.00 or "Five thousand dollars"). If you want to enter a negative number use a negative sign "-" and do not use parenthesis (ie. -2000 or -$2000 not (2000) or (-$2000)). What is Pat's accounting profit? What is Pat's economic profit? Did Pat make the right decision by becoming a personal trainer? (Yes or No)You are currently in a job as a chef in a restaurant earning $100,000 per year. You are considering opening up a restaurant in a building which you currently own. You estimate that, if you wanted to, you could rent out your building for $25,000 per year to another restaurant. Last year, your revenues and expenses from the restaurant were the following: Revenues $400,000Cost of Food $120,000Salaries/Wages $100,000Utilities $25,000Taxes $20,000 What is your accounting profit? Show your calculations What is your economic profit? Show your calculations Assuming that you are indifferent between being a chef or owning a restaurant, should you open up your restaurant? Explain why. Now suppose that instead of owning the building where your restaurant will be located, you had to pay rent of $25,000 per year for the building. Will your answers to parts 1-3 change? Show your calculations. Explain how and why your answers will change or…Store Local Shoe Store Different Neighborhood in Town Rural Outlet Travel Time Each Way (Minutes) 15 30 60 Store Local Shoe Store Price of a Boots (Dollars per boots) 114 95 Juanita earns an hourly wage of $16 at her job. In order to purchase her boots she will have to take time off work, so each hour away from her job costs her $16 in lost income. Assume that Juanita's travel time is the same each way (to and from the store) and that it will take her 30 minutes once she reaches a store to complete her shopping. Assume throughout the question that Juanita incurs no additional costs other than the boots, such as gas. Different Neighborhood in Town Rural Outlet 74 Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location. Opportunity Cost of Time (Dollars) Price of a Boots (Dollars per boots) 114 95 74 Total Cost (Dollars) Assume that Juanita considers both her opportunity costs and the price of boots when making her…
- Quacion Last year, Jarod left a job that pays $80,000 to run his own bike-repair shop. Jarod's shop charges 365 for a repair, and last year the shop performed 4,000 repairs. Jarod's production costs for the year included rent, wages, and equipment, Jarod spent $60,000 on rent and $120.000 on wages for his employees. Jarod keops whatever preft the shop eams but does not pay himself an olle wage Jarod used $25,000 of his savings to buy a machine for the business. His savings a saming an annual interest rate of 6 percent. a. What is Jarod's annual accounting profi? ( b. What is Jarod's annual economic profit? c. Based on what you have found in parts a and b., should Jarod continue running his bike-repair shop or quilt to return to his former job?Microeconomics Jon quit his job as a manager at West End Savings bank where he earned $112,000 a year. He cashed in $214,000 in corporate bonds that earned 1.0% interest annually to set up a gym. Jon has decided to buy a store front and set up exercise classes. There are 1400 people who will pay $1200 a year for unlimited classes; $850 from each person goes for instructors, maintenance, equipment, insurance, depreciation etc. Write the answers to the following questions on the answer sheet. (You must show your work.) 1. List 2 (in numbers) 2 implicit costs that Jon has not included. 2. What is Jon’s pure economic profit (or loss) in numbers?Microeconomics Jon quit his job as a manager at West End Savings bank where he earned $112,000 a year. He cashed in $214,000 in corporate bonds that earned 1.0% interest annually to set up a gym. Jon has decided to buy a store front and set up exercise classes. There are 1400 people who will pay $1200 a year for unlimited classes; $850 from each person goes for instructors, maintenance, equipment, insurance, depreciation etc. Write the answers to the following questions on the answer sheet. (You must show your work.) A.What are Jon’s total revenues? B. What are Jon’s explicit costs? In numbers C.What is his accounting profit? in numbers D. List 2 (in numbers) 2 implicit costs that Jon has not included. E. What is Jon’s pure economic profit (or loss) in numbers?
- The company that you manage has invested$5 million in developing a new product, butthe development is not quite finished. At arecent meeting, your salespeople report that theintroduction of competing products has reduced theexpected sales of your new product to $3 million. Ifit would cost $1 million to finish development andmake the product, should you go ahead and do so?What is the most that you should pay to completedevelopment?Definition of economic costs Manuel lives in Chicago and operates a small company selling drones. On average, he receives $702,000 per year from selling drones. Out of this revenue from sales, he must pay the manufacturer a wholesale cost of $402,000. He also pays several utility companies, as well as his employees wages otaling $279,000. He owns the building that houses his storefront; if he choose to rent it out, he would receive a yearly amount of $8,000 in rent. Assume there is no depreciation in the value of his property over the year. Further, if Manuel does not operate the drone business, he can work as a programmer and earn a yearly salary of $20,000 with no additional monetary costs, and rent out his storefront at the $8,000 per year rate. There are no other costs faced by Manuel in running this drone company. Identify each of Manuel's costs in the following table as either an implicit cost or an explicit cost of selling drones. Implicit Cost Explicit Cost O The wages that…Terminal Activity PROBLEM SET Study and solve the given problems below. Show your complete solutions and label your answer. Write your ANSWER on your sheet. 1. Pamela makes a monthly salary of 27,900 pesos. She also receives an additional 9.5% commission rate bonus for any sales beyond 55,000 pesos. If Pamela sold 81,500 worth of merchandise this month, what is her total gross salary? 2. John is a realtor agent. He receives 5% commission when he sells a condo unit. How much commission will he receive for selling a condo unit that cost 3,500,000 pesos? 3. Randy was paid a commission of 8.5% on his total sales. If his sales were P13,000, P15,000, P25,000, P30,000, and 33, 000 pesos consecutively, find his gross earnings.