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o-na [289]
3 years ago
5

Tom quit his $65,000 a year corporate lawyer job to open up his own law practice. In Tom's first year in business his total reve

nue equaled $150,000. Tom's explicit cost during the year totaled $85,000. What is Tom’s economic profit for his first year in business?
Business
1 answer:
Andreas93 [3]3 years ago
7 0

Answer:

Tom’s economic profit for his first year in business is $0.

Explanation:

Tom quit his $65,000 a year corporate lawyer job to open up his own law practice.

In Tom's first year in business his total revenue equaled $150,000.

Tom's explicit cost during the year totaled $85,000.

The economic profits include both implicit as well as explicit cost.

The implicit cost is the opportunity cost of quitting corporate job.

Economic profits

= Total Revenue - Total costs

= $150,000 -  ($85,000 + $65,000)

= $0

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Please answer the questions in the image. This is so frustrating....
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2 years ago
Based on the case, you might describe the generic strategy of Allegiant Airlines as:__________.
Dmitry [639]

Answer:

Based on the case, you might describe the generic strategy of Allegiant Airlines as:__________.

Cost Focus.

Explanation:

Allegiant Airlines, in its strategy, does not try to provide cost leadership to the airline industry.  But it offers low prices for passenger tickets for its specific routes.  This implies that the low cost that it offers is focused on a narrow niche market because this niche will provide it with competitive advantage in the industry.  Allegiant Airlines also employs some competitive pricing schemes, which have made it difficult for new and upcoming businesses to enter their niche market.  Allegiant also sells flights from other airlines on its site.  This tactical move increases customers' awareness of its dominance as a low fare service.

4 0
3 years ago
Under the (GLBA) privacy rule, why is it important to differentiate between a consumer and a customer?
enot [183]

Answer:

D. Only customers receive a financial institution privacy notice automatically

Explanation:

Let us take an illustration of all the points, primarily A is inaccurate because simply customers acquire a financial institution's privacy note directly. B and C are unreliable because, depending on the bank's privacy practices, both consumers and customers may have rights under the law and be able to opt-out. So, the answer will be D as we know that, the Privacy Rule demands thou to provide a note to each of your "customers" regarding your privacy systems.

3 0
4 years ago
The accounting records of Tuel Electronics show the following data.Beginning inventory 3,880 units at $8Purchases 8,660 units at
Scrat [10]

Answer:

FIFO

FIFO means First in First Out. This method values cost of sales at the earliest prices

Cost of Goods Sold = (3,880 units × $8) + (5,430 units × $10)

                                 = $85,340

LIFO

LIFO means Last in Fist Out. This method values cost of sales at the latest prices.

Cost of Goods Sold = (8,660 units × $10) + (650 units × $8)

                                 = $91,800

Weighted Average Cost

The unit cost is re-calculated with every new purchase of units made. The cost of sale will be valued on the newly calculated average unit cost.

Unit Cost = Total Cost ÷ Total Units

                = (3,880 units × $8) + (8,660 units × $10) / 12,540 units

                = $9.381

Cost of Goods Sold = Units Sold × Unit Cost

                                 = 9,310 units × $9.381

                                 = $ 87,337.11

7 0
3 years ago
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