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postnew [5]
2 years ago
7

Violet purchased a tract of land for $100,000. She quit her $30,000-a-year job as a postal employee and opened a skeet shooting

range on her land. The range generates $30,000 in net revenue after all day-to-day expenses have been covered. Assume that the relevant discount rate is 10 percent. What is Violet's business profit? What is her economic profit?
Business
1 answer:
kow [346]2 years ago
3 0

Answer:

The Business profit = $30,000

Economic profit = Loss of $10,000

Explanation:

Data provided in the question:

Cost of land purchased = $100,000

Salary = $30,000

Revenue generated = $30,000

Discount rate = 10%

Now,

The Business profit =  Net revenue generated

i.e

The Business profit = $30,000

Economic profit

= Business profit  - Interest received on land - Implicit cost (i.e the salary)

or

Economic profit = $30,000 - 10% of $100,000 - $30,000

= - $10,000

here, the negative sign of the value of economic profit depicts the loss i.e there is loss of $10,000

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Answer:

B. the quantity of only one factor of production is​ fixed; the quantities of all factors of production can be varied

Explanation:

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In the _____ stage of the advertising development process, Fallon account managers and clients must set the campaign budget. Cam
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2 years ago
Uncollectible accounts are determined by the​ percent-of-sales method to be ​% of credit sales. How much is​ uncollectible-accou
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Answer:

$1,160

Explanation:

<em>Hie, I have attached the full question as an image below.</em>

The firm usually makes provision for certain amounts so as not to overstate their profits. This expected as it is prudent than reporting profits that might never occur. Provisions of Uncollectible accounts are examples of such amounts.

An increase in Uncollectible amount compared to the opening balance is treated as an Expense in the Income Statement whilst a decrease is treated as an Income.

For this question, we are told that Uncollectible accounts are determined by the​ percent-of-sales method to be ​4% of credit sales. Thus calculation of the 2012 uncollectible-account expense is as follows :

Credit Sales - 2012 = $44,000

Beginning Balance in allowances = $600

Therefore,

Uncollectable Amount (2012) = Credit Sales x percent-of-sales

                                                 = $44,000 x 4%

                                                 = $1,760

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Conclusion :

The collectible-account expense for 2012 is $1,160

 

7 0
3 years ago
A privately owned summer camp for youngsters has the following data for a 12-week session: Charge per camper Fixed costs Variabl
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Answer:

Results are below.

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Fixed costs= $192,000

Unitary variable cost= $320 per week

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<u>To calculate the total cost, we need to use the following formula:</u>

Total cost= fixed costs + unitary variable cost*number of units

Total cost= 192,000 + 320*number of weeks

<u>Now, the total revenue:</u>

Total revenue= selling price per week*Number of weeks

Total revenue= 480*x

<u>Finally, the break-even point in units:</u>

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 192,000 / (480 - 320)

Break-even point in units= 1,200 campers

3 0
2 years ago
It is crucial to understand the various factors contributing to your employees' stress as well as the consequences of it. Catego
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Explanation:

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4. Interpersonal demands

C. Personal Sources of Stress:

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3 0
3 years ago
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