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Lyrx [107]
3 years ago
10

Jill took $50,000 that she had in savings and started her own business. If left in investments she would have earned $5,000 this

year. Jill also left a job that paid her $70,000 a year and plans on paying herself $40,000. Materials and other labor costs will be $80,000. The company is located in a building that Jill owns. She could have rented the building out for $40,000 but plans on charging the company only the insurance and mortage payment of $20,000. What do the accounting and economic costs equal?
Business
1 answer:
vova2212 [387]3 years ago
7 0

Answer:  Economic cost = $175,000

Accounting cost = $100,000

Explanation: The difference between economic cost and accounting coast is economic cost takes into consideration the next best alternative foregone, that is, opportunity cost whereas accounting cost only sums cost incurred. In the given case the interest on savings and salary of job is the opportunity cost of Jill.

Therefore,

Economic cost = $5000 + $70,000 + $80,000 + $40,000 - $20,000=$175,000

Accounting cost =  $80,000 +  $20,000 =  $100,000

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The bonds issued by the south foot bear a coupon rate of 7.5 percent, payable semiannually. the bonds mature in 6.5 years, sell
icang [17]

Answer: 7.5%

Explanation:

Given the following :

Coupon rate = 7.5% semi-annually = 0.0375

Coupon or interest payment per period = $37.5

Period (n)= 6.5 years * 2 = 13

Face value(f) = $1000

Price of bond = face value = $1000

Semiannual Yield to maturity = [(((f-p)/n) + C) / (f + p)/2]

Semiannual YTM = [(((1000 - 1000) / 13) + 37.5) / (1000 + 1000)/2]

Semiannual Yield to maturity = [(((0 /13) + 37.5) / 2000/2]

= 37.5 / 1000 = 0.0375 = 3.75%

Yield to maturity = 2 × Semiannual yield to maturity

Yield to maturity = 2 × 3.75% = 7.5%

4 0
3 years ago
The idea of _____ is a form of innovation that constantly seeks ways to improve business processes and add value to products and
Slav-nsk [51]

Answer:

The answer is Continual Improvement Process

Explanation:

Continual Improvement Process involve the action(s) undertaken by businesses to improve their goods, services or method of operations.

Simply put, it is the policy in a workplace that seeks to improve the way things are done on a day-to-day basis.

Continual improvement process is important in business, in that it makes the business owner(s) or employees think about the problems that affect them and formulate solutions to these problems. This will therefore increase efficiency in business.    

7 0
4 years ago
Kraft produces Lunchables, a prepackaged meal usually consisting of several crackers, small slices of meat, and small slices of
ziro4ka [17]

Answer:

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Explanation:

The small portion size and types of drinks indicates that this is a product Children. But For children products, the marketing strategy will always be targeted to their parents. They do this because children do not have the resources and decision ability to make the purchase by themselves.

From the way this product is descripted,

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3 years ago
Everything else held constant, a balanced budget increase in government spending (that is, an increase in government spending th
Setler [38]

Answer: Option (A) is correct.

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Here both increases by the same amount, but still there is an increase in the aggregate demand but the amount by which aggregate demand increases is less than the amount by which government spending increases.

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Annette [7]

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Planning for retirement is making preparations for your future so that you can continue to achieve all of your objectives and desires on your own. Setting your retirement goals, calculating how much money you will require, and making investments to increase your retirement savings are all included in this. Every retirement strategy is different.

Planning for retirement is crucial because it might prevent you from running out of money in later life. Your strategy can assist you in determining the rate of return you require on your assets, the appropriate level of risk, and the maximum amount of income you can safely draw from your portfolio.

Learn more about Planning for retirement here

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