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Helen [10]
3 years ago
8

Jolene is opening a doggy daycare named "Little Barks." She is leaving her current job where she makes $75,000 per year in order

to start her own business. The building that Little Barks will be located in is already owned by Jolene, as she was leasing this location out to a tenant for $5,000 per month. Additionally, Jolene will have to pay $10,000 for business permits and insurance in case one of the dogs bites another dog or a person. Jolene will need to buy dog food, toys, beds, and other miscellaneous equipment that will cost an estimated $20,000. She expects revenue to be $125,000 a year. Calculate Jolene’s accounting and economic profit. Address whether Jolene should open Little Barks, or stay at her current job. Fully explain how you came to your answers.
Business
1 answer:
brilliants [131]3 years ago
6 0

Answer:

Accounting profit is the difference between total revenue and accounting cost in which the accounting cost is containing only the explicit cost incurred. Economic profit is the difference between total revenue and total opportunity cost, the latter containing both the explicit cost and the implicit cost incurred.

Accounting profit = revenue - explicit cost

Accounting profit = 125,000 - (10000 + 20000)

Accounting profit = 95,000

Economic profit = accounting profit - implicit cost

Economic profit = 95,000 - (75000 + 5000)

Economic profit = 15,000

This implies that while accounting profit does not undertake implicit cost of economic activity (cost for which no explicit payment is made separately), economic profit does deduct them. Now economic profit is positive, Jolene should open Little Barks.

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mojhsa [17]

Answer:

B)the payback period is on a different time frame.

Explanation:

Return on sustainability investment can be regarded as performance measure that is been utilized in evaluation of the gains which is produced due to result of corporate sustainability initiatives as regards amount of money that is invested in those initiatives.

Sustainable return on investment can be regarded as methodology used in identification as well as quantifying of environmental and societal, impacts of investment as regards a projects and initiatives.

It should be noted that The ROI on sustainability efforts can be difficult to quantify because the payback period is on a different time frame.

5 0
3 years ago
Jack Simpson, contract negotiator for Nebula Airframe Company, is currently involved in bidding on a follow-up government contra
Sergeeva-Olga [200]

Answer: 5,882.5‬ hours

Explanation:

Cumulative Labor Hours to be planned for = Cumulative factor * Time of first unit

Cumulative Factor = Average learning rate for Number of units.

Learning rate from unit 1 to 2 = Labor hours required for 2nd unit / Labor Units required for 1st unit

= 2,250/2,500

= 0.9

Learning rate from unit 2 to 3 = Labor hours required for 3rd unit / Labor Units required for 2nd unit

= 2,120/2,250

= 0.94

Average learning rate = (0.9 + 0.94) / 2

= 0.9

= 90%

There are 6 units in total including the first units checked and the additional 3 units.

Cumulative factor for 6 units at 90% from the table is 5.101.

Cumulative labor hours = 5.101 * 2,500

= 12,752.5‬ hours

The time for the Addiotnal 3 units is;

= Cumulative time for all units - time for the first 3 units

= 12,752.5 - 2,500 - 2,250 - 2,120

= 5,882.5‬ hours

6 0
3 years ago
The​ employment-population ratio measures the
Klio2033 [76]

Answer:

A. percentage of the working age population that is not employed.

D. understates the true degree of joblessness in the economy.

B. does not affect the​ employment-population ratio.

Explanation:

The employment population is the population which is not employed out of the total population willing to be employed.

Thus, in a population there are people who want to work, and are working and people who want to work, but cannot find work.

When a person who is unemployed drops out of the total labor force then the unemployment rate, will be understated which will clearly, not show the fair state of joblessness in the economy as the person without job is not included in labor force.

As the employment ratio is based on population and not on labor force the dropping of unemployed person from the labor force will not affect the employment ratio.

7 0
4 years ago
John bought 1,700 shares of Intel stock on October 18, 2015, for $44 per share plus a $750 commission he paid to his broker. On
Dvinal [7]

Answer:

Explanation:

A. John’s basis in the 1,000 shares of Intel stock is $45,750.

is the purchase price of $30,000 (i.e., 44 × $1,000) plus the $750 commission paid to the broker.

b.On the sale, John realizes $62500. This is the sales price of $63500 (i.e., 1,000 × $63.50)minus the transaction fee of $1,000.

c.John’s gain on the sale is $16,750 which is the amount realized minus his adjusted basis (i.e., $62500 – 45,750). The gain is a long-term capital gain because John held the stock for more than a year before selling

4 0
3 years ago
The market mechanism benefits society by ensuring that ________.
Ray Of Light [21]
The market mechanism benefits society by ensuring that: <span>scarce resources are channeled into products most desired by society
Market mechanism determines which products stays or go by relying purely on the force of supply and demand. If the products are desired by the customers, the producer will always keep up with the demand in order to rake in the potential profit.</span>
8 0
3 years ago
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