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gavmur [86]
3 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]3 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)

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3 years ago
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Answer:

Planning and Controlling

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3 years ago
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madreJ [45]

Answer:

Profit= $106,682.52

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Giving the following information:

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3 0
3 years ago
Alex managers a team of several professional. He is cognizant that he needs to be aware of how stress might present in his workf
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Answer:

The correct answer is E.

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The correct option is E.

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2 years ago
Whitts BBQ would like to issue some 10-year, semiannual coupon bonds at par. Comparable bonds have a current yield of 9.16 perce
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Answer:

9.50%

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When the bond will sold at par the yield to maturity and the coupon rate is equal plus the present value of the bond is equal to the face value of the bond

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Since in the given situation, the companies wants to sell its bond at par i.e means the yield to maturity should be equal to the coupon rate i.e 9.50%

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