Answer:
C) $4,000
Explanation:
To calculate economic profit we can use the following formula:
economic profit = total revenue - (accounting costs + implicit costs) = (total revenue - accounting cost) - implicit costs
where:
- accounting profit = total revenue - accounting cost = $50,000
- implicit costs: ($20,000 x 5%) + $45,000 = $1,000 + $45,000 = $46,000
economic profit = $50,000 - $46,000 = $4,000
Answer:
$210
Explanation:
Given:
Total budget = $1,685
Amount spent on small improvements = $425
The budget left after spending on small improvements
= Total budget - Amount spent on small improvements
= $1,685 - $425
= $1,260
Now,
the budget left is the maximum budget for the all 6 interior doors
Thus,
6 × max budget for single door = $1,260
or
Max budget for single door = $210
Answer:
A measurable plan is a plan that can be effectively quantified to justify it's qualities.
Explanation:
A financial plan can be defined as a set of guidelines that act as a map to help in managing ones savings and expenditures to meet set goals and objectives. In order to execute a financial plan, one of the features that have to be considered in good financial planning is to ensure that the goal is measurable.
In our case, you plan to save $5,000 for a down payment on a new car. This means that you need to save up to $5,000 in order to afford the car down payment. The following steps can be used;
1. Determine the goal: our goal is to save up to $5,000. The amount is a measurable figure that can be recorded as a goal.
2. Determine measurable ways to achieve the goal: this involves first determining the time you need to achieve the goal and the times and amount you will save each period to achieve $5,000 at the end of the time-frame. Lets say you need to save $5,000 in ten days, this implies that you will need to save (5,000/10)=$500 per day.
3. Keep a record every time you make a contribution towards your savings account to track how far you have reached.
4. Once the time has elapsed, calculate the total amount of savings you have collected over time to check if the plan was achieved.
<span>Harold because he pays his bills on time and does not have too much debt compared to his income.</span>
