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
Mamont248 [21]
3 years ago
9

Donnie's Donuts incurs $450,000 per year in explicit costs and $200,000 in implicit costs. The bakery earns $800,000 in revenues

and has $2 million in net worth. Based on this information, what is the accounting profit for Donnie's Donuts?
Business
1 answer:
marshall27 [118]3 years ago
5 0

Answer:

$150,000

Explanation:

Given that

Total revenue = $800,000

Explicit cost = $450,000

Implicit cost = $200,000

The computation of the accounting profit is as shown below :-

= Total revenue - Total cost

= $800,000 - $650,000

= $150,000

Total cost = Explicit cost -Implicit cost

= $450,000 + $200,000

= $650,000

Therefore for calculating the accounting profit we simply deduct the total cost from total revenue.

You might be interested in
Airline a and airline b are the two largest airlines in the country. the chief executive officer of airline a calls the chief ex
Sveta_85 [38]
I would say this type of arrangement between the two largest airlines could be considered a type of cartel whereby most or a high % of the airline passenger market is controlled mostly by two airlines so they think they can raise prices unilaterally.
4 0
4 years ago
On December 31, 2017, Gonzalez Company granted some of its executives options to purchase 180,000 shares of the company's $10 pa
Vesnalui [34]

Answer:

Option C $450,000 decrease

Explanation:

The reason is that the cost to buy the shares in the market is lower than $50 per share so buying the shares at $50 per share is not benefiting the directors at all. This means that the liability which was calculated using the black scholes model was standing at $1350,000 for 3 years and $450,000 for a single year will not be waived off because the directors didn't exercised the option and are taking money benefits which means under fair value method the net income will decrease by $450,000 because this is the amount paid to directors.

6 0
3 years ago
There is $257 in your account and you earn simple interest of 3.2% for 5 years. What is your new balance?
skad [1K]

Answer:

I am not 100% sure but I think that the answer is $298.12

3 0
3 years ago
Why would a potential employer want to know about your honors and awards?
VARVARA [1.3K]

Answer:

Explanation:

Honors and Awards on a resume can highlight skills which are valuable to many employers. ... Your personal statement can show that you have self-belief, your Awards and Honors section on your resume can prove you have the ability.

8 0
3 years ago
If labor demand is downward sloping and labor supply is upward sloping, then when labor demand rises faster than labor supply, i
Lelechka [254]

Answer:

Rises

Explanation:

If labor demand is downward sloping and labor supply is upward sloping , then when labor demand rises faster than labor supply , it is expected that real wages rises.

Labor demand is downward sloping means the demand for labor in the market is less as compared to the supply of labor which is high as compared to its supply so when the demand starts rises faster as compared to the supply then the available labor been less in quantity gets a chance to demand for high wages because of monopoly competition .

7 0
3 years ago
Other questions:
  • Annenbaum Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the
    8·1 answer
  • Economic integration is an indispensable tool of economic development. Explain five (5) rationale for Nigeria's affinity with th
    13·1 answer
  • The BRAC anti-poverty program in Bangladesh gave poor families training on how to raise livestock, a savings account, and help w
    13·1 answer
  • We learned in class that Starbucks uses its baristas as front line “brand ambassadors”. This is an example of ________________?
    14·1 answer
  • If the MPC in an economy is 0.8, government could close a recessionary expenditure gap of $100 billion by cutting taxes by
    11·1 answer
  • An activity-based costing system that is designed for internal decision-making will not conform to generally accepted accounting
    8·1 answer
  • As the number of securities in a portfolio is increased, what happens to the average portfolio standard deviation? a) It decreas
    6·1 answer
  • What is the main difference between a market and a command economy?
    7·1 answer
  • Khalil Hamid Ali borrowed $12,000 and paid $1,890 in exact interest when the loan came due 11 to 2 years later. What rate of int
    10·1 answer
  • Which of the following is a difference between flow shops and job shops? a. Unlike flow shops, job shops require little or no se
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!