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liq [111]
3 years ago
8

A business owner makes 1,000 items a day. Each day she contributes eight hours to produce those items. If hired, elsewhere she c

ould have earned $250 an hour. The item sells for $15 each. Production does not stop during weekends. If the explicit costs total $150,000 for 30 days, the firm's accounting profit for the month equals
Business
1 answer:
Olin [163]3 years ago
4 0

Answer:

Accounting profit=$300,000

Explanation:

<em>Accounting profit is the difference between revenue from from production or service activities and the expenditures incurred.  </em>

<em>It is the difference between the total revenue and the</em><em> total explicit costs</em><em>. Explicit costs are those transaction cost incurred to generate revenue . E.g the cost of the material , labour, expenses e.tc.</em>

On the other hand, economic profit includes accounting profit plus opportunity cost. Opportunity cost is the value of the benefits sacrificed in favour of a decision.  

Accounting profit = Sales revenue - Explicit cost

Sales revenue = Price × units sold= $15× 1000× 30 = $450,000 1

Explicit cost = $150,00

Accounting profit = $450,000- 150,000 = $300,000

Accounting profit=$300,000

Note we ignore the amount she could have earned because it is an implicit cost

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If a seller needs to net $50,000 after the sale, how much must the real estate sell for if the selling costs include a 7% commis
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Answer:

$55,054

Explanation:

Calculation for how much must the real estate sell for

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4 0
2 years ago
In each of the following situations, what type of unemployment is Melanie facing? Explain.a. After completing a complex programm
arlik [135]

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C. Cyclical Unemployment

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A. Frictional Unemployment refers to people moving between jobs which is the case for the first scenario

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3 years ago
On March 14, Teal Co. accepted a 120-day, 6% note in the amount of $10,000 from AZC Co., a customer. On the due date of the note
Y_Kistochka [10]

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Interest =  Principal x rate x time ( period )

= $10,000 x 6% x 120/360

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2 years ago
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