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Flauer [41]
4 years ago
15

Gomez runs a small pottery firm. He hires one helper at $12,000 per year, pays annual rent of $5,000 for his shop, and spends $2

0,000 per year on materials. He has $40,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth) that could earn him $4,000 per year if alternatively invested. He has been offered $15,000 per year to work as a potter for a competitor. He estimates his entrepreneurial talents are worth $3,000 per year. Total annual revenue from pottery sales is $72,000. Calculate the accounting profit and the economic profit for Gomez’s pottery firm.
Business
1 answer:
bearhunter [10]4 years ago
5 0

Answer: Accounting profit = $35000, Economic profit = $13000

Explanation:

Accounting profit = Revenue - Explicit cost

Accounting profit = Revenue - Cost of Help - Rent - Cost of materials

Accounting profit = $72000 - $12000 - $5000 - $20000

Accounting profit = $35000

Economic profit = Revenue - Explicit cost - Implicit Cost

Economic profit = Revenue - Cost of Help - Rent - Cost of materials - Renting equipment - working for competitors - talent

Economic profit = $72000 - $12000 - $5000 - $20000 - $4000 - $15000 - $3000

Economic profit = $13000

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What is the term for a group of consumers who share a set of social relationships based on the use of a​ product?
mixer [17]

Answer:

The correct answer is brand community.

Explanation:

A brand community can be defined as a community formed on the basis of attachment to a product or a brand. The consumers that belong in a brand community generally share the same tastes, cultures, and values.  

The main characteristics of a brand community are

  • Shared consciousness
  • Sense of moral responsibility
  • Rituals and traditions

A number of companies show brand communities, for instance, Jeep, Harley Davidson motorcycles, Barbie, Lego, Royal Enfield motorcycles, etc.

7 0
3 years ago
Coffer Co. is analyzing two potential investments.
MakcuM [25]

Answer:

d. Project X

Explanation:

For Project X

Year       Net cash outflow             Net cash inflow Balance

0              -$77,000                        -$77,000

1               $28,000                        -$49,000

2               $28,000                       -$21,000

3                $28,000                        $7,000

4                    0                               $7,000

Payback period = 2 + $21,000 ÷ $28,000

= 2 + 0.75

= 2.75 years

For Project Y

Year       Net cash outflow          Net cash inflow Balance

0              -$55,000                       -$55,000

1                $2,000                         -$53,000

2               $25,000                       -$28000

3                $25,000                       -$3,000

4                $20,000                       $17,000

Payback period = 3 +3,000 ÷ 20,000

= 3 + 0.15

= 3.15 years

Project X has a lesser than 3 year payback period. So, the correct option is D

4 0
3 years ago
Payment of $1,000 payables *
sashaice [31]

Answer:

None of the above

Explanation:

Given that the question is about Payment of $1,000 payables, then in a journal account, there will be a record of "Decreases in account payable $1,000; increases in cash $1,000"

Hence, considering the available options, the right answer to the question is "None of the above"

4 0
3 years ago
Tinder, the mobile dating app, is competing for market share with Match among college students. In its promotional messages, Tin
kramer

Answer:

E. Points of Difference

Explanation:

Point of Difference (PoD) are factors of products or services (in this case, dating services) that stablish differenciation with competitors with the goal of increase bran loyalty as the consumer see their benefit increased.

While Point of parity, (PoP) are associations not unique to the brand but at equal level as the competitor.

As the statement assume Tinder is faster and cheaper than Match it stablish differenciation points.

8 0
3 years ago
When voluntary exchange takes place, both parties gain from the exchange.
Sliva [168]
True because both are learning something from each position they exchanged on
7 0
3 years ago
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