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lawyer [7]
3 years ago
13

Suppose a local hardware store has explicit costs of $2 million per year and implicit costs of $44,000 per year. If the store ea

rned an economic profit of $50,000 last year, this means that the store's accounting profit equaled:
Business
1 answer:
astra-53 [7]3 years ago
3 0

Answer:

$94,000

Explanation:

A local hardware store has explicit cost of $2 million per year

The implicit costs are $44,000 per year

The store earned an economic profit of $50,000 last year

Therefore, the store's accounting profit can be calculated as follows

Accounting profit = Implicit costs + economic profit

= $44,000 + $50,000

= $94,000

Hence the store's accounting profit is $94,000

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what is the present value of the following cash-flow stream if the interest rate is 6%? note: do not round intermediate calculat
Anettt [7]

The present value of the cash-flow stream if the interest rate is 6% is $323.03.

<h3>What is the interest rate?</h3>

The interest rate can be defined as the amount or the percentage that is being fixed or fluctuating depending upon the condition of the agreement. The interest is calculated on the amount that is being loaned or given to the individual or a company.

According to the given question, the interest rate is 6%

1st year $120

2nd year $320

3rd year $220

Now, by applying the formula for the present value:

\rmPV = \dfrac{fv}{(1 + r)^t}

\dfrac{120}{1.06} +  \dfrac{320}{(1.06)^2} + \dfrac{220}{(1.06)^3}

= 113.20 + 284.96 + 184.87

= 323.03

The present value of the cash flow stream is $323.03

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7 0
2 years ago
For for computation of pre-incorporation profit salary to vendor
Leokris [45]

Interest on purchase consideration, the salary of partners, and interest on vendor capital are to be charged during the pre-incorporation period.

8 0
2 years ago
Sardi Inc. is considering whether to continue to make a component or to buy it from an outside supplier. The company uses 14,200
IceJOKER [234]

Answer:

Total cost $24.44

Explanation:

Sardi Inc.

Make

Direct materials$10.00

Direct labor7.00

Variable manufacturing overhead 2.80

Fixed manufacturing overhead (30% × $4.80 is avoidable)1.44

Opportunity cost ($6.40 per unit ÷ 2 minutes per unit) × 1 minutes3.20

Total cost $24.44

Therefore the cost of making the component should be compared to the price of buying the component at $24.44

3 0
3 years ago
Consider Miray's decision to go to college. If she goes to college, she will spend $24,000 on tuition, $12,000 on room and board
Komok [63]

Answer:

Total cost of going to college= $45,900

Explanation:

<u>We need to consider the opportunity cost of not working and earning a salary. Of room and board, we will take into account the incremental difference.</u>

Tuituion= $24,000

Room and board= 12,000 - 8,000= $4,000

Books= $1,900

Salary= $16,000

Total cost of going to college= $45,900

5 0
2 years ago
The banking system receives a new cash deposit of $250,000. total deposits eventually rise by $1 million. the value of the reser
never [62]

Cash deposit received by bank= $250,000

Total deposits= $1,000,000

The Reserve ratio will be 0.25

The amount of reservable liabilities that commercial banks must keep onto rather than lend out or invest is known as the reserve ratio. The central bank of the nation, in this case, the Federal Reserve in the United States, sets this criterion. It is often referred to as the ratio of cash reserves.

The reserve requirement, which is frequently used interchangeably with the reserve ratio, refers to the minimum amount of reserves that a bank must maintain.

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3 0
2 years ago
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