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lora16 [44]
3 years ago
10

Suppose an assistant professor of economics is earning a salary of $75,000 per year. One day she quits her job, sells $100,000 w

orth of bonds that had been earning 5 percent per year, and uses the funds to open a bookstore. At the end of the year, she shows an accounting profit of $90,000 on her income tax return. What is her economic profit?
Business
1 answer:
34kurt3 years ago
8 0

Answer:

Economic profit  $10,000

Explanation:

Income earned as an assistant professor = Salary + Interest on bonds = 75000 + 5% on 100,000 = 75000 + 5000

Income earned as an assistant professor = $80,000

Income from the bookstrore = $90,000

In calculating economic profit, opportunity costs are deducted from revenues earned.

Economic profit = $90,000 - $80,000 = $10,000

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Employee factors observed that may warrant further reporting and review by managers and other institutional officials includes:

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<h3>What factors affect employee performance?</h3>

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Answer: E,C,D,B.

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Direct financing occurs when money is borrowed from the financial market without using a third party or an intermediary, this is done in other to avoid indirect financing and it's high borrowing cost effect where the overall cost of the loan can be increased through interest rate.

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4 years ago
The three goals of sustainable development that include economic, environmental, and ethical sustainability are referred to as t
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