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Molodets [167]
3 years ago
14

Ebon opened up a small coffee shop which earned him $175,000 in total revenue the first year. To do this, Ebon had to quit his p

revious job as a barista where he earned $25,000 per year. Ebon calculated his economic profit to be $10,000, but he wants to know what his explicit costs were. What are Ebon's explicit costs?
Business
1 answer:
sergij07 [2.7K]3 years ago
3 0

Answer:

Ebon's explicit costs are $140,000

Explanation:

Explicit costs are all those which is directly paid to operate the business like wages, material etc. On the other hand implicit cost is the opportunity cost to choose and alternative.

Economic profit is the net of Revenue, Implicit and explicit costs.

Economic profit = Revenue - Explicit cost - Implicit costs

As we know salary earning of the let job is opportunity cost.

$10,000 = $175,000 - Explicit cost - $25,000

$10,000 = $150,000 - Explicit cost

Explicit cost  = $150,000 - $10,000 = $140,000

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An exchange-rate policy in which the government usually allows the exchange rate to be set by the market, but sometimes interven
uranmaximum [27]

Answer: Managed Float

Explanation:

Also called "Dirty Float", the Managed float is an exchange rate system that allows for the currency of a country to be set by the forces of demand and supply in the market.

However, unlike in a clean float,  the Central bank will occasionally intervene in the market to influence the how fast the currency is changing value or to control the direction it is going.

This is usually done to protect the domestic economy from sudden shocks in the global economy.

3 0
3 years ago
This information is available for Pronghorn Inc. for the current year.
fiasKO [112]

Answer:

Pronghorn Inc.

Inventory Turnover = 7 times

Days in inventory = 52.14 days

Gross profit rate = 47.86%

Explanation:

a) Data and Calculations:

Beginning inventory $10,620

Ending inventory 13,430

Average inventory = $12,025 ($10,620 + $13,430)/2

Cost of goods sold 84,175

Sales 146,100

Gross profit = $69,925 ($146,100 - $84,175)

Inventory Turnover = Cost of Goods Sold/Average Inventory

= $84,175/$12,025

= 7 times

Days in inventory = 365/7 = 52.14 days

Gross profit rate = Gross profit/Sales * 100

= $69,925/$146,100 * 100

= 47.86%

3 0
3 years ago
Which of the following actions would likely raise life insurance premiums?
Dafna1 [17]
Living a non-smoker its b
6 0
4 years ago
Read 2 more answers
If the government for the state of Washington collects $65.8 billion in tax revenues in 2013 and total spending in the same year
MatroZZZ [7]

Answer:

D a budget deficit.

Explanation:

A budget deficit is when government spending exceeds income from taxes.

The State of Washington spent a total of $74.8 billion and had a total income of $65.8 billion. Spending exceeds income from taxes by $9 billion. The State of Washington has a budget deficit.

A budget surplus is when income from taxes exceeds government spending.

I hope my answer helps you.

8 0
3 years ago
Tracy and Brett are married. Their current assets $9,243 Their current liabilities $6,921 Their monthly nondiscretionary expense
katen-ka-za [31]

Answer:

1.3355

Explanation:

Current ratio = cash + cash equivalents ÷ current liabilities =$9,243 ÷ $6,921 =1.3355

Hope this helps & plz mark brainiest

5 0
4 years ago
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