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.
Answer:
$170
Explanation:
Data provided in the question:
Amount paid to the tax preparers = $44 per hour
Predetermined overhead rate for the firm = $24 per labor hour
Time required by the Jones tax return to complete = 2.5 hours
Now,
Total amount to be paid for 2.5 hours of work = $44 × 2.5
= $110
Total predetermined overhead = 2.5 × $24
= $60
Therefore,
The total cost for the job
= Total amount to be paid for 2.5 hours of work + Total predetermined overhead
= $110 + $60
= $170
A mortgage is a <span>debt instrument</span>
The most important effect for a firm is the value and the cost position in relation to other firms that represent their competitors. Something very imprtant for business success is the fact that <span>managers need to keep in mind that competitive advantage is determined jointly by industry and firm effects.</span>
If a sandwich chain, experiments with offering a free bag of chips with its sandwiches. This sandwich chain is in the <u>test marketing</u> stage.
<h3>What is test marketing?</h3>
Test marketing stage can be defined as the stage that is use to know how good or how bad a product is based on the response of the consumer that have use or tasted a product or based on the feedback received.
Most companies tend to make use of test marketing create product awareness or to build brand awareness and to know the reaction of potential customers.
Therefore This sandwich chain is in the <u>test marketing</u> stage.
Learn more about test marketing here:brainly.com/question/9314688
