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
eduard
2 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:
monitta2 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]2 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

You might be interested in
purchased goods for Rs 10000 and paid Rs 4000 in cash. The balance amount is paid through cheque after receiving discount Rs 500
Vsevolod [243]

purchased goods for Rs 10000 and paid Rs 4000 in cash. The balance amount is paid through cheque after receiving discount Rs 500.​

Total balance is 500

In economics, a good is anything that satisfies a person's needs and provides utility, such to a customer buying a satisfying product. Services that cannot be transferred and transferable products are two categories that are frequently distinguished. When a good is helpful to people but is in short supply compared to demand, it is said to be a "economic good" and requires human effort to attain.  Free things, on the other hand, like air, are always available and don't require any deliberate effort to obtain. Private goods include anything a person owns or uses on a regular basis that is unrelated to food, such as televisions, living room furnishings, wallets, cell phones, etc.

A consumer good, often known as a "ultimate good,"

Learn more about good here

brainly.com/question/15727371

#SPJ9

8 0
2 years ago
Symbolic interactionists believe that the social value of the elderly in america ________ when the economy shifted being agricul
tekilochka [14]
<span>Symbolic interactionists believe that the social value of the elderly in America decreased when the economy shifted being agricultural to industrial. 
This may be completely true - industrial era means more use of technology, and usually, the elderly aren't that keen on using new technology. This also means that they are less and less relevant when it comes to the social life in America which is always growing and developing.</span>
3 0
3 years ago
waterloo, ltd. manufactures a component used in aircraft navigation systems. demand has been strong and the executive staff at w
Anni [7]

To meet the target the projected output level for next year required is 712,750.

What is sales budget ?

A sales budget is a financial strategy that projects the entire income of a business over a given time frame. To forecast the performance of the company, it relies on two factors: the volume of products sold and the price at which they are sold.

The calculation of the production level required to accomplish the goals for the following year is presented below:

Ending Inventory (662,000 ÷ 12 × 1.5) 82,750

Sales Budget                                    662,000

Total inventory required                744,750

Less Beginning Inventory             -32,000

Production                                    712,750  

Question:

Waterloo, Ltd. manufactures a component used in aircraft navigation systems. Demand has been strong and the executive staff at Waterloo is planning for next year. Yesterday, you were called into a budgeting meeting where production plans are being reviewed. You learn that the inventory policy at Waterloo is to hold one and one-half months’ worth of sales (to avoid issues with transportation disruptions). The sales budget for next year is 662,000 units, spread evenly over the year. Because of an unexpected increase in demand, inventory at the end of this year is expected to be only 32,000 units. The capacity of the plant is 702,000 units annually.1. What production level next year will be required to meet the targets? (Do not round intermediate calculations.)

To learn more about sales budget click on the link below:

brainly.com/question/16821253

#SPJ4

6 0
2 years ago
The budget for a merchandiser differs from a budget for a manufacturer because
Oduvanchick [21]
<span>a merchandise purchases budget replaces the production budget.
the manufacturing budgets are not applicable.</span>
3 0
3 years ago
Is it bad to call someone a pig
algol [13]
Well to me I feel that it is kinda rude to call someone that. but if you say just kidding at the end  then I'll take it as a joke lol. ((:
8 0
3 years ago
Read 2 more answers
Other questions:
  • John is an entrepreneur who plans to enter a franchise contract with a hotel business. which of these is an advantage that John
    14·2 answers
  • Ryan Company deposits all cash receipts on the day they are received and makes all cash payments by check. Ryan's June bank stat
    14·1 answer
  • Which one of the following statements is correct if a firm has a receivables turnover of 36.5? Group of answer choices It takes
    5·1 answer
  • Vegan delite stock is valued at $68.60 a share. the company pays a constant annual dividend of $2.40 per share. what is the tota
    11·1 answer
  • A program in which students learn a specific skill for a particular job is called a(n)
    8·1 answer
  • Capacity of a ship used to determine taxation of the ship by its country of registry or by port or canal authorities is called
    14·1 answer
  • Whiteside Corporation issues $500,000 of 9% bonds, due in 10 years, with interest payable semiannually. At the time of issue, th
    14·1 answer
  • Which type of financing refers to giving up some control of the business to raise funds?
    10·1 answer
  • A division of IBM works out of 360 locations in 64 countries, tracking more than 1.5 million assets for both IBM and its clients
    10·1 answer
  • Allison has a horse stall cleaning business that has been growing rapidly since she started it three years ago. She estimates th
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!