Answer:
c. $31,000
Explanation:
Calculation for the Net self-employment income
Gross receipts $100,000
Less Cost of goods sold ($49,000)
Less Depreciation expense ($5,000)
Less Utilities($6,000)
Less Real estate taxes ($1,000)
Less Sec. 179 expense ($1,000)
Less Mortgage interest ($7,000)
Net self-employment income $ 31,000
Therefore the Net self-employment income will be $ 31,000
Answer:
Decrease by $27000
Explanation:
Given that
Contribution margin = 44000
Initial fixed cost = 54000
Final fixed cost = 37000
Recall that
Net operating income = Contrubution Margin - Net fixed cost.
NOI = 44000 - (54000 - 37000)
NOI = 44000 - 17000
NOI = $27000
Thus, Net operating income decreased by 27000.
Answer:
17.76%
Explanation:
The computation of the time-weighted return on your investment is given below
But before that we have to do the following calculations
Year 1 = ($46.50 - $42.50) + 2 ÷ ($42.50) × 100 = 14.12%
Year 2 = ($54.50 - $46.50) + 2 ÷ ($46.50) × 100 = 21.51%
Now the time weighted return is
(1 + t)^2 = (1 + 14.12%) × (1 + 21.51%)
= 1.1412 × 1.2151
= √1.3867 - 1
= 17.76%
Answer:
b. would leave the market first if the price were any lower.
Explanation:
In the market, the producer always sells more than the economic cost ( raw materials and labor cost) that he bears during production. The marginal seller means that the seller earns zero economic profit ( producer surplus) i.e. an economic cost equals the selling price. So if the price falls then the marginal seller would leave the market first because he will be indifferent when earns the zero economic profit but when the price falls he would leave the market.
