Please someone answer this for me. I will give brainliest points

gomez runs a small pottery firm. he hires one helper at $11,000 per year, pays annual rent of $6,000 for his shop, and spends $2

7nadin3 [17]

For a poetry farm, the capital gain is $70,000 while the economic profit is $6,000.

<h3>Why does accounting profit exist?</h3>

The owner's profit, or company profit, is what is meant by accounting profit. This profit may be obtained by totaling all business income and deducting specified costs from the total. The explicit cost in this context refers to expenses spent in the course of operating the firm, such as rent paid, labor costs paid, materials acquired, etc.

<h3>Briefing:</h3>

Accounting costs = Helper cost + Annual rent + materials = $(11,000 + 6,000 + 22,000) = $39,000

Accounting profit = Revenue - Accounting cost = $(70,000 - 39,000) = $31,000

Implicit costs = Interest from savings foregone + earning from alternative job + entrepreneurial talent

= $(4,500 + 17,000 + 3,500) = $25,000

Economic profit = Accounting profit - Implicit costs = $(31,000 - 25,000) = $6,000

To know more about profit visit:

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7 0

11 months ago

Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following production and sales data for June, p

lesya692 [45]

Answer and Explanation:

a. The preparation of the sales budget is prepared below:-

Sonic Inc.

Sales budget

Particulars Unit Sales Unit Selling price Total Sales 

Volume

Model Rumble:

East Region 12,000 $60 $720,000

West Region 14,000 $60 $840,000

Total $1,560,000

Model Thunder:

East region 3,500 $90 $315,000

West region 4,000 $90 $360,000

Total $675,000

Total revenue from sales $2,235,000

To reach the total revenue from sales we simply added the total of model rumble with a total of model thunder.

b. The Preparation of the production budget is shown below:-

Sonic Inc.

Production budget

Particulars Units Model Units Model

Rumble Thunder

Expected units to be

sold 26,000 7,500

(12,000 + 14,000) (3,500 + 4,000)

Add: Desired ending

inventory 500 250

Total units required 26,500 7,750

Less: Beginning inventory 750 300

Total units to be produced 25,750 7,450

So, to reach at total units to be produced we simply deduct the beginning inventory from total units required.

7 0

2 years ago

Internal control does not consist of policies and procedures that

kotegsom [21]

Answer:

d.guarantee the company will earn a profit

Explanation:

Internal controls are controls put in place by management to mitigate against identified risk. Risk basically refers to what could go wring in a process. Controls are put in place to mitigate against the risk of error or fraud and do not necessarily prevent the company from making a loss.

Companies make profit or loss based on management's decisions such as where to invest, what time to invest, introduction of a new product, management of cost of sales and operating expenses etc

Internal controls basically consist of policies and procedures that ensure that the company's asset are not misused (fraud), no misrepresentation of revenue (fraud), employees and managers comply with laws and regulations, business information is accurate ( no misrepresentation of records due to error) etc.

Hence Internal control does not consist of policies and procedures that guarantee the company will earn a profit.

The right option is d.

4 0

3 years ago

Poppy is interested in computer networking. What online resource can she use to find out the education and training for this car

andrew-mc [135]

Occupational Outlook Handbook!

3 0

2 years ago

The Swivel Chair Company manufacturers a standard recliner. During February, the firm's Assembly Department started production o

ivanzaharov [21]

Answer:

54,000 chairs

Explanation:

The computation of the number of chairs at the beginning of the month is shown below:

Inventory at the beginning of the month = Units completed and transferred + ending inventory units - Units started

= 180,000 chairs + 21,000 chairs - 147,000 chairs

= 54,000 chairs

We simply applied the above formula to find out the inventory at the beginning of the month

7 0

2 years ago