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likoan [24]
3 years ago
13

Sid has decided to leave his $70,000-a-year landscape design job and open a new kayak business. his insurance cost is expected t

o be $2,000 per year. the kayaks he owns are valued at $25,000, but he experiences 10% annual depreciation on them. he will also use building space that he owns, but, to do so, he must give up the $10,000 per year in rent he used to receive for the space. revenue is expected to equal $100,000 per year. sid's economic profit is:
Business
1 answer:
Karo-lina-s [1.5K]3 years ago
4 0

Economic profit refers to the profit earned by deducting the implicit cost and the explicit cost from the total revenue.

Economic Profit = Total revenue - (Explicit cost + Impllicit Cost)

where Total Revenue = $100,000

Explicit Cost = $2000 + ($25000*10%) = $4500

Implicit Cost = $70000 + $10000 = $80000

Economic Profit = $100,000 - ($4,500 + $80,000)

Economic Profit = $100,000 - $84,500

Economic Profit = $15,500

Hence, Sid's Economic Profit is equal to $15,500

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A stock has an average expected return of 10.8 percent for the next year. The beta of the stock is 1.22. The T-Bill rate is 5% a
uranmaximum [27]

Answer: 4.7%

Explanation:

Expected return is calculated as:

= Risk free return + Beta ( Market risk premium)

10.8% = 5% + (1.22 × Market risk premium)

10.8% - 5% = 1.22market risk premium

5.8%/1.22 = market risk premium

Market risk premium = 0.058/1.22

Market risk premium = 0.047

Market risk premium = 4.7%

7 0
3 years ago
Kevin Abt noticed that people were cooking meals in their homes less often but wanted to avoid the hassle of going out to eat. T
masha68 [24]

Answer:

Opportunity.

Explanation:

There was an opportunity presented when Kevin noticed that people do not want to cook at home but also they do not want to go through the hassle of going out to buy food. A need was identified and the solution was the Takeout Taxi initiative that delivers restaurant-prepared food to customers.

Costumers that did not want to cook at home and did not want to go out were now satisfied by this service.

5 0
3 years ago
Read 2 more answers
You want to determine the upper control line for a p-chart for quality control purposes. you take several samples of a size of 1
lana66690 [7]
The answer to this is 0.08 hope that this helped
7 0
3 years ago
The organizations likely to benefit the most from the global reach of e-commerce are those that:.
timofeeve [1]

The organizations likely to help the most from the global reach of e-commerce exist those that: formerly depended on foot traffic into one physical store to sell their products.

<h3>What is e-commerce?</h3>

E-commerce (electronic commerce) stands for the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, especially the internet. These business transactions happen either as business-to-business (B2B), business-to-consumer (B2C), consumer-to-consumer, or consumer-to-business. E-commerce exists in the action of electronically buying or selling products on online services or over the Internet. Ecommerce can be described as the buying and selling of goods electronically online. It is prevalent because of the many advantages of e-business -internet commerce, electronic funds transfer, mobile commerce – this exists broken up into two parts.

Global Reach guides a business initiative to improve the access between a company and their current and potential customers via the usage of the Internet. The organizations likely to help the most from the global reach of e-commerce exist those that: formerly depended on foot traffic into one physical store to sell their products.

To learn more about e-commerce refer to:

brainly.com/question/23369154

#SPJ4

4 0
2 years ago
Rodney Blevins is a vacuum cleaner salesman. He earns a 22 percent commission on every vacuum cleaner he sells. In the month of
lakkis [162]
The commission for the month of December is $2,767.60

Solution:
(1,258*10)= $12,580 we apply the 22% to that result and we obtain $2,767.60
3 0
3 years ago
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