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Sonja [21]
3 years ago
15

Gomez runs a small pottery firm. He hires one helper at $14,500 per year, pays annual rent of $7,500 for his shop, and spends $1

8,000 per year on materials. He has $40,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth) that could earn him $5,000 per year if alternatively invested. He has been offered $23,000 per year to work as a potter for a competitor. He estimates his entrepreneurial talents are worth $6,000 per year. Total annual revenue from pottery sales is $86,000. Instructions: Enter your answers as whole numbers.a. Calculate the accounting profit for Gomez’s pottery firm. $ .b. Now calculate Gomez's economic profit. $ .
Business
1 answer:
uysha [10]3 years ago
6 0

Answer:

a). Accounting profits=$6,000

b). Economic profit=-$6,000

Explanation:

a). The accounting profits for Gomez's pottery firm can be expressed in the form;

Accounting profits-Total monetary revenue-Total monetary expenses

where;

Total monetary revenue=$86,000

Total monetary expenses=excludes opportunity cost=wages+rent+materials+equipment=(14,500+7,500+18,000+40,000)=$80,000

replacing;

Accounting profits=(86,000-80,000)=$6,000

Accounting profits=$6,000

b). Gomez's economic profit

Economic profit=Total revenue-total costs

where;

Total revenue=(86,000+5,000+6,000)=97,000

Total costs includes opportunity cost=(80,000+23,000)=103,000

replacing;

Economic profit=(97,000-103,000)=-$6,000

Economic profit=-$6,000

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bija089 [108]

Answer:

neither she nor her supervisor has any demonstrable reason to access such information.

Explanation:

When security measures are introduced in information system access in an organisation, an individual is limited to only a defined set of data.

Access to data outside one's normal job role requires a request for addition of such access.

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She will not be able to get it because she should normally not be able to discipline a manager.

So she can't access it because neither she nor her supervisor has any demonstrable reason to access such information.

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2 years ago
Scribd in the marketplace of today, ________ are the primary means of socializing companies and brands.
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The answer is: Social networks and related tools

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4 0
3 years ago
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Answer:

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3 years ago
Electrodo Co. purchased land for $55,000 with $20,000 paid in cash and $35,000 in notes payable. What effect does this transacti
Archy [21]

Answer:

(c). Net increase in assets of $35,000 and a net increase in liabilities of $35,000

Explanation:

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The journal entry for purchase of Land partly by cash and partly for issuing a notes payable would be:

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