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aalyn [17]
3 years ago
9

A business owner makes 1000 items a day. Each day she spends 8 hours producing those items. If hired, elsewhere she could have e

arned $250 an hour. The item sells for $15 each. Production occurs seven days a week. If the explicit costs total $150,000 per month, what is her economic profit
Business
1 answer:
lyudmila [28]3 years ago
5 0

Answer:

Economic profit= $214,000

Explanation:

Giving the following information:

Business:

Units= 28,000 a month

Hours= 224 hours

Total cost= 150,000 a month

Selling price per unit= $15

Other work:

Income= $250 an hour

E<u>conomic profit includes the opportunity cost.</u>

Economic profit= 28,000*15 - 150,000 - 250*224

Economic profit= $214,000

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Businesses can be classified into the following forms: sole proprietorship, partnership, corporation, limited liability company
Charra [1.4K]

Answer:

Owners have limited liability.

Explanation:

A corporation is an entity , established by shareholders or individuals with the aim of making profit. It is a legal entity hence can enter into a contract, can also sue and be sued.

The legal process involved in the establishment of corporation is called incorporation. It contains the main reason why the corporation is in business, name and office address, types and number of shares to be issued.

Because the business is incorporated and also a legal entity, it means that the owners are protected personally should their be any litigation against the corporation. Moreover, the liability of the owners are limited to the investment in the corporation.

6 0
3 years ago
She negotiated a price of $21,900 and will trade in her old car for $2,350. She will put another $850 with it and borrow the rem
lisabon 2012 [21]

Answer:

The monthly payment will be $434

Explanation:

Price of New car = $21,900

Price of old car exchanged = $2,350

Cash Payment = $850

Amount of Loan = $21,900 - $2,350 - $850

Amount of Loan = A = $18,700

Rate of interest = r = 6% = 0.06 = 0.005 per month

Number of total periods = 12 x 4 = 48

P = $18500 / { [ ( 1 + 0.005 )^48 ] - 1 } / [ 0.005 ( 1 + 0.005)^48 ]

P = $18500 / [ 0.2704891611 / 0.006352446 ]

P = $18500 / 42.58

P = $434.47

6 0
3 years ago
A _____ plan gives all employees a minimum level of benefits and a set amount to spend on flexible benefits, such as additional
Katarina [22]

Answer:

Cafeteria Plan

Explanation:

The cafeteria plan is minimum benefits that the employer have to provide or personally provide to all the employees working in its organization. In some jurisdictions like USA and Europe, the employer has to provide minimum level of facilities and benefits to the employee which inculdes healthcare, pension contributions, etc.

5 0
2 years ago
indirect materials are those used that enter into and become a major part of the finished product true or false
Hitman42 [59]
Yes it is true and it is correct
3 0
3 years ago
A firm incurs $35,000,000 of actual OH costs. It has a PDOH rate of $450 per machine hour and 100,000 machine hours were actuall
ella [17]

Answer:

c.  Debit: Overhead Control $10,000,000  

Credit: Cost of Goods Sold $10,000,000

Explanation:

The journal entry to close the overhead account is presented below:

Overhead Control A/c Dr $10,000,000

       To Cost of Goods Sold A/c  $10,000,000

(Being the overhead account is closed)

The computation is shown below:

= Applied overhead - actual overhead

where,

Applied overhead equal to

= $450 × 100,000 machine hours

= $45,000,000

And, the actual overhead is $35,000,000

So, the amount would be

= $45,000,000 - $35,000,000

= $10,000,000

Since the applied overhead is greater than the actual overhead, so we debited the overhead control account and credited the cost of goods sold account

5 0
3 years ago
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