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eduard
3 years ago
5

Economan has been infected by the free enterprise bug. He sets up a firm on extraterrestrial affairs. The rent of the building i

s $6,000, the cost of the two secretaries is $42,000, and the cost of electricity and gas comes to $7,000. There’s a great demand for his information, and his total revenue amounts to $130,000. By working in the firm, though, Economan forfeits the $65,000 he could earn by working for the Friendly Space Agency and the $6,000 he could have earned as interest had he saved his funds instead of putting them in this business.
a. What is his profit or loss by an accountant’s definitions?
Instructions: Round your answer to the nearest whole dollar and use a (-) if the number is negative.
Accounting profit is ($ . )
b. What is his profit or loss by an economist’s definitions?
Instructions: Round your answer to the nearest whole dollar and use a (-) if the number is negative.
Economic profit is ( $ . )
Business
2 answers:
monitta3 years ago
7 0

Answer:

There are two types of profit and costs in nay business, which are accounting costs/profit and the economic costs/profits.

Accounting costs include everything that is tangible or the monetary costs a firm pays, while the economic costs include the cost which is intangible(Opportunity costs) as well as tangible.

Here in this question, the profit of the firm therefore is,

a. From an accountant;s definition = 130000-(6000+42000+7000) = 75000.

b. From an economist's definition = 130000-(6000+42000+7000+65000+6000) = 4000.

Hope this helps you. Thankyou.

Karo-lina-s [1.5K]3 years ago
3 0

Answer:

$4,000

Explanation:

A) accounting profit only considers explicit revenues and costs which have clearly defined monetary values:

total revenue =              $130,000

rent =                               ($6,000)

secretaries' salaries =  ($42,000)

<u>utilities =                          ($7,000)</u>

accounting profit =        $75,000

B) economic profit considers both explicit revenues and costs plus opportunity costs. Opportunity costs are the extra costs or benefits lost resulting from choosing one activity or investment over another alternative.

economic profit = accounting profit - opportunity costs

  • accounting profit = $75,000
  • forfeited salary = ($65,000)
  • lost interest revenue = ($6,000)

economic profit = $75,000 - $65,000 - $6,000 = $4,000

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Explanation:

No option was given here so I think the answer is to make room for small talk. Opening up straight with the meetings agenda is not a very good way to start. By using small talks, each member of the meeting would be more open and flow better with the meetings agenda. Before the meeting starts a few minutes of small talk such as these would get everyone warmed up. And members would feel more comfortable.

7 0
3 years ago
Cor-Eng Partnership was formed on January 2, 20X1. Under the partnership agreement, each partner has an equal initial capital ba
hjlf

Answer:

$20,000

Explanation:

The problem simply asks for Eng's initial capital balance in Cor-Eng partnership and it is just Eng's <u>contributed cash of $2,000</u> to form the partnership.

No need to dwell on the other amounts. Just focus on what was being asked and you'll not get lost ^_^

8 0
3 years ago
Antonia runs her own business as a cabinetmaker. What benefit and what drawback does her sole proprietorship entail?. . Control
alina1380 [7]
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6 0
3 years ago
Margot's Deli Company has the following information for July. Cost of materials placed in production $30,000 Direct labor 25,000
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Answer:

cost of goods manufactured= $68,400

Explanation:

Giving the following information:

Cost of materials placed in production $30,000

Direct labor 25,000

Factory overhead 14,000

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<u>To calculate the cost of goods manufactured, we need to use the following formula:</u>

<u></u>

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IRINA_888 [86]

Multinational enterprises that manufacture commodity products that focus on cost leadership tend to use a business level strategy.

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Multinational enterprise are International organization or cooperation with two or more countries in the chain of operation.

They also involve in production of goods and services.

Therefore, Multinational enterprises that manufacture commodity products that focus on cost leadership tend to use a business level strategy.

Learn more on cooperation here

brainly.com/question/1669538

7 0
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