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sladkih [1.3K]
3 years ago
12

Pat used to work as an aerobics instructor at the local gym earning $35,000 a year. Pat quit that job and started working as a p

ersonal trainer. Pat makes $50,000 in total annual revenue. Pat's only out-of-pocket costs are $12,000 per year for rent and utilities, $1,000 per year for advertising and $3,000 per year for equipment. Pat's accounting profit is _______, and Pat's economic profit is _______.
a) $50,000; $15,000
b) $34,000; -$1,000
c) $34,000; $15,000
d) $15,000; -$1,000
Business
1 answer:
Svetlanka [38]3 years ago
4 0

Answer:

B. $34,000; -$1,000

Explanation:

Accounting profit equals total revenue minus explicit costs. Here,

$50,000 - $12,000 - $1,000 - $3,000 = $34,000.

Economic profit equals total revenue minus the sum of both explicit and implicit costs. Here,

$50,000 - $12,000 - $1,000 - $3,000 - $35,000 = -$1,000

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Serjik [45]

Answer:

initially charge a relatively low price per product

Explanation:

A penetration pricing approach is a strategy in which an organization establishes a low price for a new product at the beginning to attract customers and then, the price is raised. According to this, the answer is that Zen is most likely to initially charge a relatively low price per product.

6 0
3 years ago
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What steps can a government take to support free enterprise?
Wewaii [24]
Encouraging private ownership, protecting and encouraging competition, enforcing contracts, and keeping business cost low.
8 0
2 years ago
A company's prime costs total $4,800,000 and its conversion costs total $8,800,000. if direct materials are $1,900,000 and facto
garri49 [273]
Prime cost=direct material+direct labor
4800000=1900000+direct labor
Solve for direct labor
Direct labor=4800000-1900000
Direct labor=2900000. ..answer

If you try with the formula of the conversation cost to solve for direct labor, you will get the same answer

The formula of the conversation cost is
CC=direct labor+factory overhead

Hope it helps!
3 0
3 years ago
Why are the incentives of a supplier the opposite of the incentives of a demander
antiseptic1488 [7]

Answer:

The incentives of a supplier are the opposite of the incentives of a demander because it is a relationship whose nature makes supply and demand inversely proportional to each other: the higher the supply, the lower the demand for each product and the lower its price; While the lower the supply, the greater the demand for each product and the higher its price. Thus, in many cases, suppliers seek to restrict supply to maximize profits, while demanders seek to lower prices through a greater quantity of goods offered.

4 0
2 years ago
Why might workers dislike a lean production environment?
Marianna [84]

Answer:

Workers do not like to work in a lean production environment because there are fewer opportunities for an employee to advancement within the company. Pursuant to a leaner production line, more workers become stress due to higher levels of responsibility.

Explanation:

3 0
2 years ago
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