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
Gennadij [26K]
3 years ago
7

Ben quit his job as an economics professor to become a golf professional. He gave up his $30,000 salary and invested his retirem

ent fund of $50,000 (which was earning 10 percent interest) in this venture. After all expenses, his net winnings were $35,000. Ben's economic profits were:________.
a. $35,000.
b. $5,000.
c. $2,000.
d. zero.
Business
1 answer:
Drupady [299]3 years ago
6 0

Answer:

The correct answer is B.

Explanation:

Giving the following information:

He gave up his $30,000 salary and invested his retirement fund of $50,000. After all expenses, his net winnings were $35,000.

The difference between economic profit and accounting profit is that the first one takes into account the opportunity cost. In this case, the cost of not perceiving the salary.

Economic profit= winnings - opportunity cost

Economico profit= 35,000 - 30,000= $5,000

You might be interested in
A tile manufacturer has supplied the following data: Boxes of tiles produced and sold 520,000 Sales revenue $ 2,132,000 Variable
Greeley [361]

Answer:

vdf

Explanation:

vnfdhhddhehejejrjrjrjrjrjrrururrirjriririrkrkrkr

3 0
3 years ago
One way of reducing the amount of interest you pay on a loan is to:
zavuch27 [327]
It’s the second one
(Send extra money each month)
Hope this helps!
6 0
3 years ago
Read 2 more answers
Outdoor Expo provides guided fishing tours. The company charges $300 per person but offers a 20% discount to parties of four or
Simora [160]

Answer:

May 2  No entry is required as the transaction is yet to happen

May 7  DR Accounts Receivable                                       $1,200

                 CR Tour Revenue                                                           $1,200

May 9  DR No entry required

May 15  DR Sales Allowance (1,200 * 30%)                        $360

                    CR Accounts Receivable                                             $360

May 20  DR Cash                                                             $789.60

              DR Sales Discount                                              $50.40

                    CR Accounts Receivable                                            $840

Working

Accounts Receivable = 1,200 - 360 sales allowance = $840

Sales Discount = 840 * 6% discount = $50.40

Cash = 840 - 50.40 = $789.60

b. Net Revenues

=  Revenue - Sales allowance - Sales discount

= 1,200 - 360 - 50.40

= $789,60

c. Partial Income Statement

Tour Revenues                                                         $1,200

Less:

Sales Allowance                                   $360

Sales Discount                                   <u> $50.60 </u>    

                                                                             <u>  ($410.60)</u>

Net Tour Revenue                                                 $789.40

8 0
3 years ago
Discuss how structural dimensions of the firm, including formalization, standardization, and centralization, can affect the firm
Andreyy89

Explanation:

A company's organizational structure can be defined as the organization of the company's activities so that it operates more efficiently and effectively and achieves its objectives and goals.

Therefore, the structural dimensions of a company including formalization, standardization and centralization will directly influence the innovation of an organization in relation to several variables such as its internal environment, processes, products and services, as there are organizational structures that are more focused on innovation than others, such as the horizontal structure in relation to the vertical, since the vertical structure is the most rigid and with a higher hierarchy, while in the horizontal structure there is greater autonomy of employees and greater participation in the decision-making process, which is a more flexible environment open to innovation.

5 0
3 years ago
"when johanna cut prices in her jewelry store by 20 percent, the dollar value of her sales fell by 20 percent. this indicates th
anzhelika [568]
How much ever percent she cuts so will the value of her sales
3 0
3 years ago
Other questions:
  • How to never get corruption in songs on psp?
    15·1 answer
  • The following events apply to Gulf Seafood for the 2018 fiscal year: The company started when it acquired $60,000 cash by issuin
    14·1 answer
  • The cookie company in the mall hires only labor to produce cookies. The workers are paid $80 per day, and the cost of renting th
    11·1 answer
  • How far is the sun to the earth​
    9·2 answers
  • Sheridan Company received $135000 in cash and a used computer with a fair value of $318000 from Carla Vista Co. for Sheridan Com
    7·1 answer
  • A company checks written for $600 for rent expense cleared the bank correctly but the company accountant incorrectly recorded th
    10·1 answer
  • A household appliances manufacturer has hired you to help analyze their social media datasets to determine which of their refrig
    8·1 answer
  • Indicate the effect on the accounting equation and on the debit-credit analysis. Aug. 1 Opens an office as a financial advisor,
    8·1 answer
  • German and Japanese firms are viewed as having a _____ advantage in exporting compared to U.S. firms.
    7·1 answer
  • The organizations likely to benefit the most from the global reach of e-commerce are those that.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!