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Mnenie [13.5K]
3 years ago
9

Linda sells 100 bottles of homemade ketchup for $10 each. The cost of the ingredients, the bottles, and the labels was $700. In

addition, it took her 20 hours to make the ketchup and to do so she took time off from a job that paid her $20 per hour. Linda’s accounting profit is ___________ while her economic profit is ___________ . LO9.1 $700; $400 $300; $100 $300; negative $100 $1,000; negative $1,100
Business
1 answer:
iogann1982 [59]3 years ago
3 0

Answer:

$300; 

negative $100 

Explanation:

Accounting profit is total revenue less total cost

Accounting profit = Total revenue - Total cost

Total revenue = 100 × $100 =$1,000

Total cost = $700

Accounting profit = $1000 - $700 = $300

Economic profit is accounting profit less implicit cost or opportunity cost.

Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.

Implicit cost = $20 × 20 = $400

Economic profit = Accounting profit - Opportunity cost

$300 - $400 = $-100

I hope my answer helps you

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On January 1, Year 2, Kincaid Company's Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $76,000
trapecia [35]

Answer:

The effect the entry to recognize the uncollectible accounts expense for Year 2 will have on the elements of the financial statements are that it will reduce Accounts Receivable to $15,560 and the Allowance for Doubtful Accounts to $1,900 at the end of Year 2.

Explanation:

Credit sales estimated to be uncollectable = Credit sales * Estimated percentage uncollectable = $215,000 * 1% = $2,150

Ending account receivable = Beginning accounts receivable + Credit sales - Cash collected - Receivales written off as uncollectable - Credit sales estimated to be uncollectable = $76,000 + $215,000 - $271,100 - $2,100 - $2,150 = $15,560

Ending Allowance for Doubtful Accounts = Beginning Allowance for Doubtful Accounts - Allowance for Doubtful Accounts - Receivales written off as uncollectable = $4,000 - $2,100 = $1,900

Therefore, the effect the entry to recognize the uncollectible accounts expense for Year 2 will have on the elements of the financial statements are that it will reduce Accounts Receivable to $15,560 and the Allowance for Doubtful Accounts to $1,900 at the end of Year 2.

8 0
3 years ago
Lauren is the owner of a bakery. Last year, her total revenue was $145,000, her rent was $12,000, her labor costs were $65,000,
Eddi Din [679]

Answer:

So if you subtract the cost of everything for her bakery she still comes out with making 53,000, so if she left she would not earn any profit because she would be making the same.

7 0
2 years ago
Digg Co. installs a manufacturing machine in its factory at the beginning of the year at a cost of $36,000. The machine's useful
Nastasia [14]

Answer:

Annual depreciation (year 1)= $1,400

Explanation:

Giving the following information:

Buying price= $36,000.

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To calculate the depreciation expense for the first year under the units of production method, we need to use the following formula:

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Annual depreciation= [(36,000 - 6,000)/300,000]*14,000

Annual depreciation= 0.1*14,000= $1,400

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C

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The recent global boom in the market price for scrap steel and aluminum<em><u> has led to a sudden rise in the theft of everyday metal objects like manhole covers, guard rails, and empty beer kegs. </u></em>

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A manager who encourages subordinates to take time off from work to recuperate from stressful projects might be utilizing leader
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