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
gavmur [86]
4 years ago
11

Suppose a firm has an annual budget of $200,000 in wages and salaries, $75,000 in materials, $30,000 in new equipment, $20,000 i

n rented property, and $35,000 in interest costs on capital. The owner/manager does not choose to pay himself, but he could receive income of $90,000 by working elsewhere. The firm earns revenues of $360,000 per year. To receive a normal profit, the firm described above would have to
Business
1 answer:
Molodets [167]4 years ago
5 0

Answer:

The firm will need additional revenue of $90,000 to earn normal profit(zero economic profit)

Explanation:

Normal profit equals zero economic profit or when total revenue equals

the addition of explicit cost and Implicit cost. Implicit cost is the opportunity cost.

Explicit cost = $200,000 + $75,000 + $30,000 + $20,000 + $35,000

=$360,000

Implicit cost is $90,000

Total revenue is $360,000

Normal profit = $360,000 - ($360,000 + $90,000)

$360,000 - $450,000

-$90,000.

This means the firm will need additional revenue of $90,000 to earn normal profit(zero economic profit)

You might be interested in
A high school student working part-time as a shelf stocker had a gross income of $6675 last year. If his federal tax rate was 10
Natalka [10]

Answer:$1378.38

Explanation:

7 0
3 years ago
Read 2 more answers
Hunters should teach others, work with landowners, and cooperate with game wardens. these efforts are part of what makes a hunte
AysviL [449]
<span>This is part of the concept of involvement. Being involved in the hunting sport makes sure that people are responsible for their actions in the future, makes people aware of the needs and requirements of those who do undertake the activity, and gives people the information they'll need in order to be successful at the activity.</span>
7 0
3 years ago
What can you determine about the corporate culture from the fact that they waited this long to consider the development of an EP
stepan [7]

Answer:

That the company has a dysfunctionall organizational culture

Explanation:

Dysfunction in organizational culture occurs when the existing culture of an organization no longer advances the organization's effectiveness in the marketplace.

In this case technology innovation is affected by the delay on the addoption of a EPM as Technology in business allows organizations to improve both the performance and overall effectiveness of products, systems and services, which, in turn, enables businesses to expand quickly and efficiently.

3 0
3 years ago
Brian is a 25% partner in the BC Partnership. On January 1, BC distributes $20,000 cash and land with a $16,000 fair value (insi
pentagon [3]

Answer:

The amount is $4,000 and Brain character reflects the capital gain.

Explanation:

Partnership: In partnership, there are two or more partners who are ready to share the profit or losses in their profit-loss sharing ratio.

The computation is shown below:

= Brain's basis - the inside basis

= $16,000 - ($20,000 - $8,000)

Since the brain basis show excess amount than inside basis which reflects the capital gain .

The inside basis is not relevant in the computation part. Hence, it is ignored.  

6 0
3 years ago
A major oil company is considering the optimal timing for the construction of new refineries. From past experience, each doublin
Doss [256]

Answer:

a, 22276.07

b. $32.9157 million

c.$29.9669million

Explanation:

Find the values of k   and  a assuming a relationship of the form   Assume that  f(y)=ky^a is in units of barrels per day.

\frac{f(2y)}{f(y)} =1.75=\frac{k(2y)^a}{k(y)^a} =2^{a} =a=\frac{Ln(1.75)}{Ln(2)} =0.8073

f(y)=ky^a=k=\frac{f(y)}{y^a} =\frac{25}{6000^0.807} =22276.07

b. Determine the optimal timing of plant additions and the optimal size and cost of each plant addition.a=0.8073, rx=0.41

optimal timing x=rx/r=2.05yrs

optimal size xD=2.05(1.5)

3.075million barrels/year

f(y)=ky^a=0.0223(\frac{3.075*10^5}{365} )^0.8073=32.9157million\\

$32.9157 million

c. Suppose that the largest single refinery that can be built with current technology is 7,500 barrels per day. Determine the optimal timing of plant additions and the optimal size and cost of each plant in this case

Optimal size xD=min\frac{307500}{365} ,7500= 7500 barrls/day =2.735million barrels /year

Optimal timing will be X^*=x*D/D=2.7375/1.5=1.825 year

optimal cost f(y)=ky^a=0.0223(7500)^0.8073=$29,9669 milion

Download docx
4 0
4 years ago
Other questions:
  • Liability to pay only under certain conditions is what
    15·1 answer
  • Which of the following terms accurately describes functional strategies that are properly aligned, traceable to the business str
    15·1 answer
  • Functional strategy is the set of activities that each _________ will pursue in order to help the firm accomplish its competitiv
    12·1 answer
  • You would like to establish a trust fund that would provide annual scholarships of $100,000 forever. How much would you have to
    6·1 answer
  • Maria's Food Service provides meals that nonprofit organizations distribute to handicapped and elderly people. Here is her forec
    12·1 answer
  • Assume that capital is limited to 9 machine​ hours, but labor is unlimited in supply. In which company is the marginal product o
    11·1 answer
  • You've recently noticed attendance issues with your team and suspect that team mates aren't getting along with one another. This
    10·1 answer
  • Question 6 of 10
    6·1 answer
  • A class requires students to use a program that must be downloaded to their computer in order to complete an assignment that is
    7·1 answer
  • On Jordan's 20th birthday he decides to invest 10,000 that he has saved. He will not be adding any money to the initial investme
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!