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kiruha [24]
3 years ago
9

Jessica makes photo frames. She spends $5 on the materials for each photo frame. She can create one photo frame in an hour. She

earns $10 per hour at a part-time job at the local coffee shop. She can sell a photo frame for $30 each. A.) An accountant would calculate the total profit for one photo frame to be
B.) An economist would calculate the total cost for one photo frame to be
Business
1 answer:
vivado [14]3 years ago
6 0

Answer:

$25

$15

Explanation:

Accounting profit is total revenue less total cost or explicit cost.

Accounting profit = Revenue - Explicit cost

Economic profit is accounting profit less implicit cost or opportunity cost

Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.

In this question, Jessica's opportunity cost is her part time job at the coffee shop.

Total cost for an economist = Explicit cost + implicit cost / opportunity cost = $5 + 10 = $15

Accounting profit = $30 - $5 = $25

I hope my answer helps you

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Gault Corporation had the following shares of stock outstanding on December 31, 2018:
Andreas93 [3]

Answer:

The total amounts payable to preferred stockholders and common stockholders, respectively, are: $480,000 and $320,000.

Explanation:

Cumulative preferred stock has the dominant right over common stocks in term of receiving cash dividend.

The dividend paid to preferred stock per year is: 100 x 20,000 x 8% = $160,000 and the company owed investor 03 years of dividend ( 2016,2017,2018) with the dividend payable amounted to 160,000 x 3 = $480,000.

The dividend paid to common stock is the left over, after paying to preferred stock holders, which is calculated as $800,000 - $480,000 = $320,000.

So, The total amounts payable to preferred stockholders and common stockholders, respectively, are: $480,000 and $320,000.

5 0
3 years ago
Assume the current U.S. dollar-yen spot rate is 90 ¥/$. Further, the current nominal 180-day rate of return in Japan is 1% (annu
Citrus2011 [14]

Answer:

Explanation:

Forward excahnge rate/spot exchange rate = (1+rh)/(1+rf)

rh - periodic interest rate in the home currency

rf - periodic interest rate in the foreign currency

Forward/90 = [1+1%*180/360]/[1+2%*180/360]

Forward = 1.005/1.01 * 90 = 89.55

Forward rate is 89.55 yen/$

3 0
3 years ago
Which of the following statements is false? A) Battery acid cannot be neutralized B) Batteries should never be stored on metal t
zysi [14]

Answer:

The answer is (A) battery acid cannot be neutralized.

Explanation:

Battery acid <em>can</em> be neutralized. Since battery acid is lower in pH, a person must increase battery acid’s pH so that it would be neutralized. Usually, to do this, people utilizes baking soda since it has a higher pH. Neutral pH is a pH of 7, so one must carefully add the baking soda to the battery acid until when tested, the pH value has arrived at a neutral range.  

8 0
4 years ago
Stuart Allen Company manufactures computer hardware. The president of the company bought a new car as a gift for his daughter an
inessss [21]

Answer:

C. Economic entity assumption

Explanation:

Monetary unit assumption: As per this assumption, US dollar is considered to be a king. The accountants are forbidden of logging transactions in any other currency. It also grant accountants permission to ignore inflation when reviewing the statements considering that purchasing power of a dollar remains unchanged.

Going concern assumption: As per this assumption, a firm will continue its operations for the foreseeable years. Irrespective of the fact, whether the owner is alive or not, a firm may continue to operate unless dissolved. In case of bankruptcy, a firm will discontinue its operations.

Cost principle: As per this principle, an asset should be recorded at the acquired price. The acquired price is the price at which the asset was originally purchased i.e. the historical cost of an asset.

Economic entity: Each firm or organization is an economic entity and has a separate artificial identity from its owner or stakeholders. So, only the transactions pertaining to business are recorded and personal expenses are excluded from the financial statements of the firm.

Thus, the personal expense of president of the company should not have been recorded in the financial statements of the company.

3 0
4 years ago
You have just made your first $5,500 contribution to your retirement account. Assume you earn a return of 10 percent per year an
Novosadov [1.4K]

Answer:

$400,897.66

Explanation:

Assuming that no further contributions will be made and that interest is compounded annually, the expression that describes the future value of a principal amount 'P', deposited at an annual rate 'r', for a period of 'n' years is:

FV = P*(1+r)^n

For a 45-year $5,500 investment at a rate of 10% per year, the future value is:

FV = 5,500*(1+0.10)^45\\FV=\$400,897.66

The account will be worth $400,897.66 when you retire.

4 0
3 years ago
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