The fixed cost element of a mixed cost is the cost of having a service available. true

the equity of the corporation, a measure of the value of its assets less debt, is estimated to be 200000. linda forgoes a return

Elodia [21]

Answer:

Economic profit = $5000

Explanation:

given data

value of assets less debt = 200000.

return = 10% per year

total revenue this year = 295000

solution

we consider here that

payroll wage and salaries = $100000

interest paid = 40000

depreciation on equipment = 80000

supplies utility = 50000

so here we get first Total cost that is

Total cost = payroll + interest paid + depreciation + supplies .................1

put here value and we get

Total cost = 100000 + 40000 + 80000 + 50000

Total cost = $270000

Thus,

Accounting profit = Total revenue - total cost ..............2

Accounting profit = 295000 – 270000

Accounting profit = $25000

and we know Opportunity cost is

Opportunity cost = 10% of $200000

Opportunity cost = 10% × 200000

Opportunity cost = $20000

so here Economic profit will be

Economic profit = accounting profit - opportunity cost ..............3

Economic profit = 25000 - 20000

Economic profit = $5000

5 0

4 years ago

From the list below, select the variable that will cause the demand curve to shift: A. The number of firms in the market B. Th

butalik [34]

Answer:

Option (C) is correct.

Explanation:

Consumer income is one of the main determinant of demand. Consumer income is related with the demand of normal and inferior good.

If there is an increase in the income of a consumer then as a result the demand for a normal good increases and shifts the demand curve rightwards.

If there is a fall in the income of the consumer then as a result the demand for a normal good also decreases and shifts the demand curve leftwards.

Alternatively, the consumer income is inversely related with the demand for inferior goods.

4 0

3 years ago

An agent sells his client 10 U.S. government bonds due to mature in 30 years. According to NASAA's Statement of Policy on Unethi

Artemon [7]

Answer:

The bonds are guaranteed as to principal and interest payments by the US government.

Explanation:

According to NASAA's Statement of Policy on Unethical or Dishonest Business Practices of Broker-Dealers and Agents, a broker can say US government bonds are guaranteed on principal and interest payments.

However if inflation sets in and interest rates rises there is no guarantee from the government that interest paid on the bonds will match the higher interest rate.

So legally this statement is correct, even though the investor can lose money as a result of higher interest rate in the future.

4 0

3 years ago

You are planning to save for retirement over the next 30 years. To do this, you will invest $750 per month in a stock account an

Nikolay [14]

Answer:

Ans. Assuming that the withdrawal period is 300 months (25 years), you can withdraw every month $15,547.96

Explanation:

Hi, first, we have to take to future value (30 years in the future) the invested capital (both the stock account and the bond account). From there, we will consider the sum of both future values as the present value of the annuity that you are about to receive for the next 25 years (300 months). But before we do all that, we need to convert the return rates (compounded monthly) into effective monthly rates, for that we just go ahead and divide each one by 12, as follows

r(Stock) = 0.105/12= 0.00875

r(Bond)= 0.061/12 = 0.00508

r(Combined Account)= 0.069/12=0.00575

Now we are ready, first, let´s find the future value of the stock account.

$FV(stock)=\frac{750((1+0.00875)^{360}-1) }{0.00875} =1,887,300.74$ }