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Sveta_85 [38]
3 years ago
13

Jacqui decides to open her own business and earns $50,000 in accounting profit the first year. When deciding to open her own bus

iness, she withdrew $20,000 from her savings, which earned 5 percent interest. She also turned down three separate job offers with annual salaries of $30,000, $40,000, and $45,000. What is Jacqui's economic profit from running her own business?a. $-56,000.b. $-6,000.c. $4,000.d. $19,000.
Business
1 answer:
Ira Lisetskai [31]3 years ago
3 0

Answer:

C) $4,000

Explanation:

To calculate economic profit we can use the following formula:

economic profit = total revenue - (accounting costs + implicit costs) = (total revenue - accounting cost) - implicit costs

where:

  • accounting profit = total revenue - accounting cost = $50,000
  • implicit costs: ($20,000 x 5%) + $45,000 = $1,000 + $45,000 = $46,000

economic profit = $50,000 - $46,000 = $4,000

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Answer:

C. (2,2), (2,-2), (-2,-2), (-2,2)

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4 0
3 years ago
Which is not capital? the computer used by an accountant the person whose photograph is snapped by the candid photographer the p
Dmitry_Shevchenko [17]

The answer is: the person whose photograph is snapped by the candid photographer.

Capital refers to accumulation of assets that is owned by a certain individual or organization that can be used to generate more income.

Candid photographers only take picture of the environment around them naturally (without any edits or settings). This mean that the person who is being photographed is not being paid. Since that person does not generate income, it cannot be considered as a capital.

4 0
3 years ago
Read 2 more answers
The following information is available for Armstrong Company: Net income $450 Increase in plant and equip. $170 Depreciation exp
strojnjashka [21]

Answer:

$505

Explanation:

Armstrong Company

Cash flow from operating activities

Adjustments to reconcile net income to operating cash flow.

Net income

$450

Less : Increase in plant and equipment

($170)

Add : Depreciation expenses

$80

Add : Payment of dividends

$10

Add : Decrease in accounts receivable

$20

Add : Increase in long term debt

$100

Less : Increase in Inventories

($15)

Add : Decrease in Account payable $30

Net Cash flow from operating activities

$505

8 0
3 years ago
The expected average rate of return for a proposed investment of $650,000 in a fixed asset, with a useful life of 4 years, strai
Degger [83]

Answer:

18.5%

Explanation:

The formula to compute the average rate of return is shown below:

= Annual net income ÷ average investment

where,  

Annual net income equal to

= Expected total net income ÷ number of years

= $240,000 ÷ 4

= $60,000

And, the average investment would be

= (Initial investment + salvage value) ÷ 2

= ($650,000 + $0) ÷ 2

= $4650,000 ÷ 2

= $325,000

Now put these values to the above formula  

So, the rate would equal to

= $60,000 ÷ $325,000

= 18.5%

3 0
3 years ago
You are a consultant specializing in estimating the costs after the employees learn how to do a job more efficiently by repetiti
Ivahew [28]

Answer:

$58,600

Explanation:

The computation of the total cost for producing the 400 units for the new product is shown below:

= Learning curve at 65% for producing 400 units × cost for produced first time

= 23.44 × $2,500

= $58,600

By multiplying the Learning curve at 65% for producing 400 units with the cost i.e produced first time so that the total cost could come and the same is to be considered

5 0
3 years ago
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