If economic activity increases, it follows that economic welfare:

A friend of yours has been thinking about quitting her regular day job and going into business for herself. She currently makes

exis [7]

Complete Question:

A friend of yours has been thinking about quitting her regular day job and going into business for herself. She currently makes $63,000per year as an employee of the Ajax Company, and she anticipates no raise for at least another year. She believes she can make $205,000 as an independent consultant in six-sigma "black belt" training for large corporations. Her start-up expenses are expected to be $102,000 over the next year. If she decides to keep her current job, what is the expected opportunity cost of this decision? Attempt to balance the pros and cons of the option that your friend is turning away from.

Answer:

I would advice her to quit working as an employee and start working as an independent consultant.

Explanation:

Now here we will compute the net earnings arising from each opportunity.

Case 1: Opportunity to carry on his job

The relevant costs include is the Salary earnings which is $63,000.

Case 2: Opportunity to earn as an Independent Consultant

Independent Business Earnings are at $205,000 and the expenses associated with the opportunity is at $102,000.

This means the net earnings are = $205,000 - $102,000 = $103,000

Decision Rule:

The opportunity cost to leave the job and start working as an independent consultant would be $63,000.

If the person is desiring to pick her career over the independent consultant then the opportunity cost of leaving an opportunity to earn as an independent consultant is $103,000.

Thus the decision must be quit working as an employee and start earning as an independent consultant.

7 0

4 years ago

1. Customer A is in a shoe store. After you approach her she says, “Since I stand a lot at my job, my feet hurt by the end of th

kolezko [41]

Answer:

Her needs: A new brand of more comfortable shoes

Selling Points: Describing the comfortability of the shoe youre showing and how it contributes to that.

2. Her needs; A new golf club

Selling points: A pack of expensive golf clubs in a pack would be a good starter point. Choose a brand that seems professional.

3. Needs: A safe, comfortable new living room set

Selling Points: Something soft and affordable, safe for childrien and larger, they have three kids so it will need to be bigger.

Explanation:

7 0

3 years ago

When is audio conferencing most successful?

Strike441 [17]

A because your don’t want to call anyone that is not available at that time

7 0

3 years ago

Read 2 more answers

Southeast Systems has the following balance sheet and the income statement. The company had 10 million shares of common stock ou

solong [7]

Answer:

1) net cash flow from financing activities:

Dividends paid ($2,000,000)

Net cash flow from financing activities ($2,000,000)

No new stocks were issued, nor any new long term debt was taken.

2) total increase in cash from 2013 to 2014 was $50,000,000

there are two ways to calculate this:

ending balance of cash account 2014 - ending balance of cash account 2013 = $100 - $50 = $50 million

cash flow from operating activities = $52 + $$50 + $100 - $100 - $50 = $54

cash flow from investing activities = $0

cash flow from financing activities ($2)

net cash increase = $50 million

Explanation:

Southeast Systems Balance Sheets

2013 2014

Cash $50 $100

Accounts receivable 600 700

Inventory 500 550

Net fixed assets 1,000 1,000

Total Assets $2,150 $2,350

Accounts payable $450 $500

Notes payable 300 400

Long-term debt 650 650

Common equity 300 300

Retained earnings 450 500

Total Liabilities & Owner’s Equity $2,150 $2,350

Income Statement 2014

Sales $2,370

Cost of goods sold 2,070

Depreciation 200

EBIT 100

Interest expenses 20

Taxable income 80

Taxes 28

Net income $52

Dividends $2

4 0

4 years ago

The bowed-outward shape of the production possibilities frontier can be explained by the fact that.

Aloiza [94]

The bowed-outward shape of the production possibility frontier illustrates that the opportunity cost of one good in terms of the other depends on how much of each good the economy is producing.

<h3>What is Production Possibility Frontier?</h3>

The production possibility frontier (PPF) is a curve in economics that depicts the maximum amounts that two goods can create if they both rely on the same limited resource for production.

From the attached picture below, Let's assume that:

The vertical product is: wine
The horizontal product is: cotton

The bowed-outward shape of the production possibility frontier illustrates that the opportunity cost of one good in terms of the other depends on how much of each good the economy is producing.

Learn more about the production possibility frontier (PPF) here:

brainly.com/question/25071524

4 0

2 years ago