Answer:
a. Accounting profit for the business = $3,500
b. Economic loss = $1,000
c. The two friends can open the business and incur economic loss of $1,000 in the first year of operation. In subsequent years, the revenue may increase to generate better economic profit. This is the labor, risk, and reward of entrepreneurship.
d. If the two friends do not go ahead with the business because of the economic loss they suffer in the first year of operation, then they cannot be regarded as entrepreneurs. They are merely laborers who cannot assume any risk for greater rewards tomorrow.
Explanation:
Cost of business per month:
Operating expenses = $4,000
Lease of building = 2,000
Total expenses = $6,000
Revenue = $10,000
Accounting profit $4,000
Economic profit:
Revenue = $10,000
Total expenses = $6,000
Opportunity costs:
Lost salaries 4,500
Lost Interest 500
Total costs $11,000
Economic loss = $1,000
Answer:
The amount that should be allocated to the oven is $771.12.
The amount that should be allocated to the installation services is $102.75.
The amount that should be allocated to the maintenance services is $166.13.
Explanation:
Total price=Standard price oven +Standard price Installation +Standard price
Maintenance
=$803+$107+$173
=$1,083
Price allocated=Stand alone price of oven
/ Total price ×Price paid by customer
= $803
/ $1,083 ×$1,040
=$771.12
Price allocated=
Stand alone price of installation service/
Total price
×Price paid by customer
=
$107
/ $1,083 ×$1,040
=$102.75
Price allocated= Stand alone price of maintenance service /Total price
×Price paid by customer
= $173
/$1,083 ×$1,040
=$166.13
Answer:
Yr. amount Interest payment balance
1. 319,500 22365. (77923). 263,942
2. 263,942.18,476. (77,923). 204,495
3. 204,495 14315. (77923). 140,887
4. 140,887. 9862 (77923). 72,826
5. 72826. 5098. (77,923). 1
Explanation:
The interest charge is on the total amount due at the end of the year which is assumed to have been made available to the debtor, the annual payment is deducted from the addition of interest and principal due and the balance due is brought forward to be defray in subsequent years. The balance is expected to show zero but the balance of one shown is a roundup error.
<span>if there are no shoes at the door from which he leaves to go running, he runs barefoot. but i would think this to be a math probability question</span>
Answer:
Explanation:
Hyperinflation occurs when the prices of goods and services increases very rapidly. This situation is stirred up when the federal government in a country prints more money in order to finance their fiscal budget, this leads to increase in price coupled with inflation, this is as a result of increase in the supply of money.
The government is supposed to secure the supply of money in order to reduce inflation instead of printing more money. Consumers that understands what this means anticipates increase in price, this makes them buy more before the eventual increase in price.
Note that during hyperinflation debtors benefits, because their debt becomes worthless due to increase in price.
