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sp2606 [1]
4 years ago
9

Joe quits his computer programming​ job, where he was earning a salary of ​$65,000 per​ year, to start his own computer software

business in a building that he owns and was previously renting out for ​$25,000 per year. In his first year of business he has the following​ expenses: salary paid to​ himself, ​$40,000​; ​rent, $0; and other​ expenses, ​$35,000. Find the accounting cost and the economic cost associated with​ Joe's computer software business. ​(Enter numeric responses using an integer.​) The accounting cost of​ Joe's business is ​$ nothing. ​(Enter your response as an integer.​)
Business
1 answer:
Verizon [17]4 years ago
8 0

Answer:

The accounting cost and the economic cost associated with​ Joe's computer software business is $75,00 and the $165,000 respectively.

Explanation:

The computation of the accounting cost and the economic cost is shown below:

Accounting cost =  Other Expenses + Salary paid to himself

                           = $35000 + $40,000

                           = $75,000

Economic cost = Accounting cost + Salary expense + Rent expenses

                        = $75,000 + $65,000 + $25,000

                        = $165,000

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Answer:

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3 years ago
After mary's gifts and cards surveyed its customers, it discovered that its customers preferred the company's competition more t
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3 years ago
Redangle corp. is a company that allows its employees to set up home offices and communicate electronically to its corporate off
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3 0
2 years ago
Eagle Company, a partnership, had a short-term capital loss of $10,000 during the current year. Aaron, who owns 25% of Eagle, wi
Lubov Fominskaja [6]

Answer:

True

Explanation:

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In this case, since Aaron owns 25% of Eagle Company, any loss or gain that Eagle company has will be passed to Aaron in the same percentage. Since Eagle had a $10,000 short term capital loss, $2,500 ($10,000 x 25%) of the loss will pass to Aaron.

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3 years ago
Laura is a gourmet chef who runs a small catering business in a competitive industry. Laura specializes in making wedding cakes.
mars1129 [50]

Answer:

The correct answer is the letter a. "Make more than 20 wedding cakes a month."

Explanation:

To maximize profit the marginal price of each cake must equal the marginal cost of each cake. The marginal cost is 300 and the marginal price is 5000/20 = 250. The marginal price of each cake (250) is less than the marginal cost of each cake (300), so Laura needs to make more than 20 cakes to increase her revenue and maximize her profit.

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