Antonio lives in San Diego and runs a business that sells boats. In an average year, he receives $731,000 from selling boats. Of
this sales revenue, he must pay the manufacturer a wholesale cost of $431,000; he also pays wages and utility bills totaling $259,000. He owns his showroom; if he chooses to rent it out, he will receive $8,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Antonio does not operate this boat business, he can work as an accountant, receive an annual salary of $30,000 with no additional monetary costs, and rent out his showroom at the $8,000 per year rate. No other costs are incurred in running this boat business.-------------------------Implicit Cost Explicit CostThe rental income Antonio could receive if he chose to rent out his showroom..................?The wages and utility bills that Antonio pays ...................?.The salary Antonio could earn if he worked as an accountant ..........................?The wholesale cost for the boats that Antonio pays the manufacturer....................?Complete the following table by determining Antonio's accounting and economic profit of his boat business.Profit(Dollars)Accounting Profit ...................?Economic Profit ........................?
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Explanation
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Oakwood Primary Care Clinic is considering a capitation arrangement with a managed care organization in which the clinic would provide services to 1,500 members at $100 per member per month. Variable costs are projected at $200 per clinic visit, and fixed costs for the agreement are $800,000. Breakeven point in volume of clinic visits is 5000.
The "Cola Wars" refers to the increasing competition between worldwide known soft drinks Coca-Cola and PepsiCo during the 50s and 60s. Those decades were characterized by rapid changes in the world and the soda business was not left behind. In those years, a powerful source for marketing was introduced: the television. This boosted propaganda for the drinks of the two companies.