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ANTONII [103]
3 years ago
10

Anne Teek works full time as the manager of her used furniture store in which she has invested $40,000. Last year, her total rev

enues were $90,000 and her costs were $60,000 for merchandise, gas, electricity, and other explicit-cost items. Ms. Teek pays herself a "competitive" salary of $30,000 per year. An economist would consider her profits for the year to be
Business
1 answer:
jasenka [17]3 years ago
4 0

Answer:

C. $0 minus the opportunity cost of the $40,000 of capital invested in the store.

Explanation:

Data provided in the question

Invested amount for furniture = $40,000

Total revenues = $90,000

Miscelleanous Cost = $60,000

Competitive salary = $30,000

Based on the above information, the profits for the year is $0 that should be less the opportunity cost i.e $40,000 that represents the capital invested in the store and the same is to be considered

Hence, the correct option is c.

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4 0
3 years ago
Last year vaughn corp. had sales of $315,000 and a net income of $17,832, and its year-end assets were $210,000. the firm's tota
KATRIN_1 [288]
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4 0
3 years ago
Oct. 1 Stockholders invest $33,540 in exchange for common stock of the corporation 2 Hires an administrative assistant at an ann
harina [27]

Answer and Explanation:

The Journal entries are prepared below:-

1. Cash Dr, $33,540  

        To Common Stock $33,540

(Being the common stock issued is recorded)  

2. No journal entry is required as the agreement has been entered  

3. Office furniture Dr, $3,690  

           To Accounts payable $3,690

(Being the service revenue earned is recorded)  

4. Accounts receivable Dr, $11,190

          To Service revenue $11,190

(Being the service revenue earned is recorded)  

5. Cash Dr, $155

       To Service revenue $155

(Being the service revenue earned is recorded)  

6. Accounts Payable Dr, $660

       To Cash $660

(Being the payment of office furniture purchased is recorded)  

7. Salary expense Dr, $3,460

        To Cash $3,460

(Being the salaries paid to administrative staff is recorded)

5 0
3 years ago
On April 1, Magenta Company sells $500,000 face amount, 10% bonds. The bonds pay interest semi-annually on June 30 and December
Flura [38]

Answer:

$12,500

Explanation:

interest expense = $500,000 x 10% x 3/12 = $12,500

The dirty price of the bonds will include accrued interest expense. The bonds are issued at a premium since the market rate is lower than the coupon rate, but the amortization of the premium will reduce future interest expense, it cannot reduce past events.

7 0
2 years ago
Are perfectly competitive markets allocatively efficient in the long​ run? A. Yes comma because firms produce at the lowest aver
Phoenix [80]

Answer:

Correct option is A

Explanation:

Yes, because firms produce at the lowest average cost possible.

A perfectly competitive firm produces at MC=P=ATC in the long run, and productive efficiency is at a minimum of average total cost. An average total cost is a minimum where MC=P so the perfectly competitive markets are productively efficient in the long run.

3 0
3 years ago
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