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sineoko [7]
3 years ago
14

A business owner makes 1000 items a day. Each day she spends 8 hours producing those items. If hired, elsewhere she could have e

arned $250 an hour. The item sells for $15 each. Production occurs seven days a week. If the explicit costs total $150,000 per month, what is her economic profit? a. ​$60,000 b. ​$300,000 c. ​$240,000 d. ​$450,000
Business
1 answer:
AveGali [126]3 years ago
5 0

Answer:

c. ​$240,000

Explanation:

Her economic profit is given by her revenue deducted by the explicit costs (I=$150,000) and implicit costs (opportunity cost).

Her monthly revenue is:

R=1,000\ (items/day)*30\ days*\$15/item\\R = \$450,000

Her opportunity cost is:

O = 30\ days* 8\ (hours/day)*\$250/hour\\O=\$60,000

Her economic profit is:

P = R-I-O\\P=\$450,000-\$150,000-\$60,000\\P=\$240,000

The answer is c. ​$240,000.

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The aicpa's statements on auditing standards can be described as
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<span>The AICPA’s Statements on Auditing Standards is a guideline for auditors. This guideline shows what the minimal standards are in order for an auditor to perform their work correctly. These guidelines need to be followed in order to ensure accuracy and efficiency.</span>
8 0
3 years ago
A group of workers normally consists of 60 men, 30 women and 20 boys. They are paid at standard hourly rates as under:
dexar [7]
  1. Labour cost variance =  R.s 33,000 (F)
  2. Labour rate variance = R.s 33000 (F)
  3. Labour efficiency variance = 0

Given:

Standard Number of men = 60

Standard Number of women = 30

Standard Number of boys = 20

Standard hour rate for men = R.s 280

Standard hour rate for women = R.s 160

Standard hour rate for boys = R.s 140

Weekly working hour = 40 hours

Expected unit = 5,000 units

Number of men in march week = 70

Number of women in march week = 25

Number of boy in march week = 25

Actual wage for men = R.s 270

Actual wage for women = R.s 165

Actual wage for boys = R.s 130

Actual units = 4,500 units

Find:

  1. Labour cost variance
  2. Labour rate variance
  3. Labour efficiency variance

Computation:

Labour cost variance = [SC for AO] - AC

Labour cost variance =  [( 70 × 280) + (25 × 160) + (25 × 140)] - [(70 × 270) + (25 × 165) + (25 × 130)] × 40  

Labour cost variance = (27,100 - 26,275 ) × 40

Labour cost variance =  R.s 33,000 (F)  

Labour rate variance = (SR - AR) × AH worked

Labour rate variance = [(280 - 270)70 + (160 - 165)25 + (140 - 130)25]40

Labour rate variance = [700 - 125 + 250]40

Labour rate variance = [825]40

Labour rate variance = R.s 33000 (F)

Labour efficiency variance = (SH allowed - AH worked)SR

Labour efficiency variance = (0 - 0)SR

Labour efficiency variance = 0

Learn more;

brainly.com/question/22856853?referrer=searchResults

5 0
2 years ago
the Bailey Brothers want to issue 20-year , zero coupon bonds that yield 9% .what price should it charge for these bonds if the
prohojiy [21]

Answer:

the amount charged is $178.43

Explanation:

The computation of the price charged is  shown below:

As we know that

Future value = Present value × (1 + rate)^number of years

So,

Present value = Future value ÷ (1 + rate)^no of years

= $1,000 ÷ (1 + 0.09)^20

= $1,000 ÷ 1.09^20

= $178.43

Hence, the amount charged is $178.43

6 0
3 years ago
Journalize the entries to record the following.
vredina [299]

Answer:

Explanation:

The journal entries are shown below:

1. Petty cash A/c $1,100

       To Cash A/c $1, 100

(Being the petty cash fund is established)

2. Office supplies A/c Dr $614

   Miscellaneous selling expense A/c Dr $200

   Miscellaneous administrative expense A/c Dr $145

   Cash short and over A/c $26

             To Petty cash A/c $985

(Being the expenses are recorded)

The Cash short and over is computed below:

= $1,100 - $115- $614 - $200 - $145

= $26

4 0
3 years ago
Please help thank yoI
iogann1982 [59]

Submit and ask teacher for extra credit one day you will thank me

6 0
3 years ago
Read 2 more answers
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