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VladimirAG [237]
3 years ago
8

Jacques lives in Denver and runs a business that sells guitars. In an average year, he receives $731,000 from selling guitars. O

f this sales revenue, he must pay the manufacturer a wholesale cost of $431,000; he also pays wages and utility bills totaling $259,000. He owns his showroom; if he chooses to rent it out, he will receive $8,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Jacques does not operate this guitar business, he can work as an accountant, receive an annual salary of $30,000 with no additional monetary costs, and rent out his showroom at the $8,000 per year rate. No other costs are incurred in running this guitar business.
The rental income Jacques could receive if he chose to rent out his showroom_______.
Business
1 answer:
Lesechka [4]3 years ago
7 0

Answer:

Implicit cost

Explanation:

The rental income Jacques could receive if he chose to rent out his showroom instead of using the showroom for the operation of his guitar business will be classified as an<em> Implicit cost .</em>

<em>An implicit cost in business is a cost that results from the lost opportunity of not using a company's/business own resources excluding cash resources</em>. they are also seen as economic gain/profits sacrificed for not using the company's resources.

Jacques could use the showroom but when he decides to rent it out it becomes an implicit cost even though the rent generates revenue for him.

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The money demand function for an economy is given by (M/P)d = (0.6Y)/(i1/2). If output is 1,000 units, the nominal interest rate
DIA [1.3K]

Answer:

$0.6

Explanation:

Nominal interest rate (i) = 9% = 0.09

Output (Y) = 1,000

Money supply(M) = 1,200

==> (M/P)^d = (0.6Y) / i^(1/2)

==> 1200/P = 0.6*1000 / 0.09^(1/2)

==> 1200/P = 600 / 0.3

==> 1200/P = 2000

==> 1200 = 2000 * P

==> P = 1200/2000

==> P = $0.6

Therefore, the price level is $0.6

6 0
3 years ago
Mr. D is the manager of a local Walgreens. His biggest concern is to make sure that his store is always making the most profit p
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<u>Answer: </u>Just in time inventory

<u>Explanation:</u>

Just in time is the strategy that is generally used in production units where they can efficiently manage the stock by reducing the waste. The waste can be reduced by receiving the goods only when they are needed so this reduced the inventory costs.

Inventory cost are the costs related to procurement, storage and maintenance of the inventory. Walgreens store can reduce the stocking of goods cost by ordering them on time when required alone. The small shipment of goods for every two days once can reduce the inventory cost.

4 0
4 years ago
Complete the Transaction Worksheet: On the form provided, identify the accounts affected by each transaction and the amount of i
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I used an excel spreadsheet because there is not enough room here.

Explanation:

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If a gain of $7,600 results from selling (for cash) office equipment having a book value of $55,100, the amount reported in the
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The amount reported in the Cash Flows from (used for) Operating Activities section of the statement of cash flows using the indirect method is $7,600.

<h3>Cash flow from operating activities sections:</h3>

Based on the information given the amount that will be reported in the Cash Flows from (used for) Operating Activities section of the statement of cash flows using the indirect method is the gain amount of $7,600.

This  gain is the gain from selling office equipment and this amount must be deducted from net income in the operating activities section of the statement of cash flows.

The reason why we have to deduct the $7,600 is because under accrual basis of accounting  the amount represent a noncash addition to net income.

Inconclusion the amount reported in the Cash Flows from (used for) Operating Activities section of the statement of cash flows using the indirect method is $7,600.

Learn more about cash flow from operating activities sections here:brainly.com/question/25530656

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