The point where supply and demand meet is known as the __________. economic constant equilibrium price final point

Gomez runs a small pottery firm. He hires one helper at $11,500 per year, pays annual rent of $7,000 for his shop, and spends $2

madreJ [45]

Answer:

in this problem, we need to calculate Gomez's accounting and economic profit. To do this, let us first classify and list the explicit and implicit costs. Revenue: Sales: $85,000 Explicit costs: Cost of one helper: $18,000 Rent: $8,000 Materials: $24,000 These are the costs that require an outlay of cash. Implicit costs: Opportunity cost of funds invested in equipment: $7,000 Gomez could have invested the funds in another asset that could earn him $7,000 Opportunity cost of working as a potter in his own shop: $20,000 Gomez could have worked as a potter for a competitor that could earn him $20,000. This is the worth of Gomez's skill as a potter. Entrepreneurial talent: $4,000 This is the worth of Gomez's talent in running the business. These costs do not require an outlay of cash. These are the implicit costs. Now, we are ready to calculate both the accounting and economic profit of Gomez. a. Calculate the accounting profit for Gomez's pottery firm. $_ Accounting profit = Total Revenue − Total Explicit Costs Accounting profit = $ 85 , 000 − ( $ 18 , 000 + $ 8 , 000 + $ 24 , 000 ) Accounting profit = $ 85 , 000 − $ 50 , 000 Accounting profit = $ 35 , 000 The accounting profit is equal to $35,000. b. Now calculate Gomez's economic profit. $_ Economic profit = Total Revenue − Total Explicit and Implicit Costs Economic profit = $ 85 , 000 − ( $ 18 , 000 + $ 8 , 000 + $ 24 , 000 + $ 7 , 000 + $ 20 , 000 + $ 4 , 000 ) Economic profit = $ 85 , 000 − $ 81 , 000 Economic profit = $ 4 , 000 The economic profit is equal to $4,000.

8 0

3 years ago

The following are the transactions of Spotlighter, Inc., for the month of January:

coldgirl [10]

Answer:

Spotlighter, Inc.

Cash

Account Titles Debit Credit

Beginning balance $0

Notes Payable $4,740

Common stock $5,430

Equipment $1,000

Supplies $1,100

Ending balance $8,070

Notes Payable

Account Titles Debit Credit

Beginning balance $0

Cash $4,740

Equipment 1,600

Ending balance $6,340

Common stock

Account Titles Debit Credit

Beginning balance $0

Cash $5,430

Equipment

Account Titles Debit Credit

Beginning balance $0

Cash $1,000

Notes Payable $1,600

Ending balance $2,600

Supplies

Account Titles Debit Credit

Beginning balance $0

Cash $1,100

Accounts Payable $1,500

Ending balance $2,600

Accounts Payable

Account Titles Debit Credit

Beginning balance $0

Supplies $1,500

Ending Balance $1,500

Explanation:

1) Data and Transaction Analysis:

a. Cash $4,740 Notes Payable $4,740

b. Cash $5,430 Common stock $5,430

c. Equipment $2,600 Cash $1,000 Notes Payable $1,600

d. Supplies $1,100 Cash $1,100

e. Supplies $1,500 Accounts Payable $1,500

6 0

3 years ago

Bonita Corporation owns machinery that cost $28,400 when purchased on July 1, 2017. Depreciation has been recorded at a rate of

lana66690 [7]

Answer:

(a) Journal entries relating to depreciation for 2020 will be:

Debit Depreciation expense $3,408

Credit Accumulated depreciation $3,408

<em>(To record the depreciation expense for 2020)</em>

(b) Journal entries to record the sale transaction will be:

Debit Accumulated depreciation (machinery) $14,200

Debit Cash (proceed) $14,910

Credit Property, plant and machinery (machinery) $28,400

Credit Gain on disposal $710

<em>(To record the disposal of machinery - September 1, 2021)</em>

Explanation:

(a) Update of depreciation for 2020 by way of journals means to record the depreciation charge for that year. The yearly depreciation expense was calculated as $3,408, so simply record it with the above journals.

(b) The date of disposal is September 1, 2021. Despite the fact that depreciation had already been charged for 3.5 years at December 31, 2020, we still have to charge the depreciation for the year of disposal, i.e., 8 months as $3,408/12 x 8 months = $2,272. Accumulated depreciation for 4.3 years (July 1, 2017 - September 1, 2021) as at September 1, 2021 will be $11,928 + $2,272 = $14,200, resulting in net book value (NBV) of the machinery as $28,400 - $14,200 = $14,200 (Cost - Accumulated depreciation).

Gain or loss on disposal = Sales proceeds - NBV; positive result is a gain, while negative result is a loss.

Gain or loss on disposal = $14,910 - $14,200 = $710

4 0

3 years ago

The sense of dissatisfaction the modern worker feels as a result of producing goods that are owned and controlled by someone els

Mamont248 [21]

Answer:

alienation

Explanation:

Marx argued that the development of the 'culture' and 'history' was the result of the 'human labor' and not vice-versa. He added that the alienation from oneself is the product of becoming a mechanistic part of society. An individual starts to become alienated when the social class dominates their life. He estranges the person away from their humanistic part.

5 0

3 years ago

When Claudia purchased her new cell phone, she was offered an opportunity to purchase a car charger and a cover together at a lo

zavuch27 [327]

Answer:

D.

Explanation:

when u purchase a new cell, the cell phone company tries to sell additional cell additives with your purchase.

when reality kicks in, Walmart will save you at least $50 in phone accessories that your carrier tried to sell for twice the amount..

7 0

3 years ago