1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ksivusya [100]
3 years ago
11

What is Jared's accounting profit? Suppose Jared could have used his talents to run a similar kind of business instead. If he va

lues his entrepreneurial skill at $10,000 annually, find Jared's total implicit costs. What was Jared's economic profit last year?
Business
1 answer:
Deffense [45]3 years ago
8 0

Answer:

Explanation:

I think your question is missed of key information, allow me to add in and hope it will fit the original one.  

<em>After working as a head chef for years, Jared gave up his $60,000 salary to open his own restaurant last year. He withdrew $50,000 of his own savings that had been earning 4% interest and borrowed another $100,000 from the bank at a rate of 5%. As the restaurant space he was leasing had no separate office, Jared converted his basement apartment into office space. He had previously rented the apartment to a student for $300/month. The following table summarizes his operations for the past year. </em>

<em>Total sales revenue    $590,000       </em>

<em>  Employee wages $120,000   </em>

<em>  Materials                 $350,000   </em>

<em>  Interest on loan $5,000   </em>

<em>  Utilities                 $10,000   </em>

<em>  Rent                 $25,000   </em>

<em>Total explicit costs              $510,000 </em>

<em>a, What is Jared's accounting profit? </em>

<em>b, Suppose Jared could have used his talents to run a similar kind of business instead. If he values his entrepreneurial skill at $10,000 annually, find Jared's total implicit costs. </em>

<em>c, What was Jared's economic profit last year?</em>

My answer:

a. , What is Jared's accounting profit?

As we know that accounting profit is the difference between total sales revenue and Total explicit cost, from the table we can find that:

$590,000  - $510,000  = $80,000 is the accounting profit

b. Jared's total implicit costs.

Implicit costs include his foregone wages ($60,000), the value of his entrepreneurial skill ($10,000), foregone rent on the apartment ($3,600 = 12 x $300) plus the foregone interest on his savings ($2,000 = .04 x $50,000). These total $75,600.

c. What was Jared's economic profit last year?

Explicit plus implicit, was $585,600 = $510,000 + $75,600. His economic profit is the difference between revenue and economic cost, or $4,400 (= $590,000 – $585,600).

You might be interested in
If a limited partnership must liquidate, the distribution of assets is first made to the?
Mumz [18]

Answer:

Explanation:

i think the answer is  third party creditors

3 0
1 year ago
A middleman is Multiple Choice a person or firm whose sole responsibility is bringing a buyer to the last link in the distributi
hichkok12 [17]

Answer:

would you still like me to help you with this question

5 0
2 years ago
"
ss7ja [257]
As seen in the chart  B has the comparative advantage in coal because 1/3 > 1/5 It means they are better at producing coal than the U.S.Have in mind examples like:
U.S. 
1 barrel of oil = 4 hrs 
1 ton of coal = 5 hrs 

B 
1 barrel of oil = 7 hrs 
1 ton of coal = 3 hrs 
After seeing this we can say that the country which has more availability has a comparative advantage over other countries.
Hope this helps
8 0
3 years ago
Read 2 more answers
Risk is a necessary ‘evil’ evil’, support this assessment and give advice risk
butalik [34]

For a high-risk investment, managers require a high reward.

5 0
3 years ago
A bank provides its customers mobile applications that significantly simplify traditional banking activities. For example, a cus
zaharov [31]

Answer: Differentiation strategy

Explanation:

Differentiation strategy is a strategy that differentiate a product or service, from other identical products that are offered by competitors in the market. Differentiation is development of a good or service, which is unique for customers, in terms of features, product design, quality, brand image, or customer service.

Differentiation strategy is one of the three Porter’s Generic Strategy. In this strategy, firms pick one or more dimensions that are considered to be vital by the consumers thereby creating a unique image in the market.

The use of mobile banking application will ease the traditional method of banking and makes the bank standout.

4 0
3 years ago
Other questions:
  • A cost accountant is developing a regression model to predict the total cost of producing a batch of printed circuit boards as a
    14·1 answer
  • The contractor proposed $x,xxx,xxx for manufacturing labor contemplating the following full time equivalent (FTE) for the three
    8·1 answer
  • For a stock to be in equilibrium, that is, for there to be no long-term pressure for its price to depart from its current level,
    12·1 answer
  • Fox Corp. failed to accrue warranty costs of $150,000 in its December 31, 20x2, financial statements. In addition, a $130,000 ch
    10·1 answer
  • A monopoly exists when _____ provides a good or service.
    5·1 answer
  • The Charade Corporation is preparing its Manufacturing Overhead budget for the fourth quarter of the year. The budgeted variable
    12·1 answer
  • Schrank Company is trying to decide how many units of merchandise to order each month. The company's policy is to have 25% of th
    11·1 answer
  • While a business plan is a detailed document with many sections, its overall purpose is to describe the nature of the business,
    14·1 answer
  • What is a “work point”?
    7·1 answer
  • Suppose the rate of return on a 10-year T-bond is currently 5.00% and that on a 10-year Treasury Inflation Protected Security (T
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!