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34kurt
3 years ago
11

Suppose that you open your own business and earn an accounting profit of​ $35,000 per year. When you started your​ business, you

left a job that paid you a​ $30,000 salary annually.​ Also, suppose that you invested​ $70,000 of your own funds to start up your business.
If the normal rate of return on capital is 10​ percent, your economic profit is


A. minus​$5,000.

B. minus​$2,000.

C. ​$5,000.

D. ​$2,000.
Business
1 answer:
Aleonysh [2.5K]3 years ago
7 0

Answer:

B. minus​$2,000.

Explanation:

The computation of the economic profit is shown below:

As we know that

Economic profit = Total revenue - Explicit costs - Implicit costs

= $35,000 - $30,000 - $7,000

= -$2,000

The implicit cost is come from

= $70,000 ×10%

= $7,000

We simply applied the above formula so that the economic profit could come

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One of the most challenging tasks for any firm, including In Fine Fettle, is determining how much to spend on promotion. Four ba
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Answer:

A) the affordable method,

In Fine Fettle's management reviews what it is trying to achieve with promotion and sets the budget based on anticipated expenses.

B) the percentage-of-sales method,

In Fine Fettle's management reviews its forecasted sales volume for the turmeric bar and sets is promotional budget at $150,000.

C) the competitive-parity method,

In Fine Fettle looks at its competitors and finds that their average promotional spending ranges from $100,000 to $250,000. Therefore, the promotional budget is set at $200,000.

D) the objective-and-task method.

In Fine Fettle's management reviews its revenues and expenses and allocates promotional spending based on what management believes it has to spend

Explanation:

A) is deciding the promotion expense considering how much can afford based on the expenses budget

B) determninate the promotion based on a percentage of expected sales

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D) management will determinate on a monthly/ weekly basis where and how much to promote

8 0
4 years ago
Martin purchased municipal bonds that yield 7% annually and certificates of deposit which yield 9% annually.
jeka94

Answer:

the amount invested in municipal bond is $8,000

the amount invested in certificated on deposits = $11,000 - $8,000

= $3,000

Explanation:

Data provided in the question:

Annual yield on municipal bond = 7% = 0.07

Annual yield on certificated of deposits = 9% = 0.09

Initial investment = $11,000

Annual income = $830

Now,

Let the amount invested in municipal bond be 'x'

Therefore,

the amount invested in certificated of deposits = $11,000 - x

Thus,

according to question

⇒ 0.07x + 0.09( $11,000 - x ) = $830

⇒ 0.07x + $990 - 0.09x = $830

⇒ -0.02x = $830 - $990

⇒ -0.02x = -$160

⇒ x = $8,000

Hence,

the amount invested in municipal bond is $8,000

the amount invested in certificated on deposits = $11,000 - $8,000

= $3,000

7 0
3 years ago
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its like keeping the funds private and makeing sure no one knows alot about it

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Which is an example of a high-risk investment?
vladimir1956 [14]
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6 0
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Firlakuza [10]

Answer:

a) Increase

b) Increase

c) Increase

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3 0
3 years ago
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