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Vitek1552 [10]
3 years ago
9

Heidi quit her job as a chef making $40,000 per year to start her own restaurant. The first year, Heidi's restaurant earned $100

,000 in revenue. Heidi pays $50,000 per year in wages to the waitresses and hostess and $20,000 per year to buy food. What is Heidi's profit as measured by an accountant for the year?
Business
1 answer:
Murrr4er [49]3 years ago
3 0

Answer:

The accounting profit is $30,000.

Explanation:

The implicit cost of running the restaurant is the opportunity cost of giving up a salary of $40,000 per year working as a chef.  

The revenue earned from the restaurant is $100,000.  

The explicit costs is  

= $50,000 + $20,000

= $70,000  

An accountant will consider only the accounting cost or explicit cost in the calculation of profits.  

Accounting profit

= Total revenue - Explicit costs

=  $100,000 - $70,000  

= $30,000  

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Assuming a court did find there was a valid offer, if there was an action brought against the store, would Vinny's mistake of gi
slavikrds [6]

Answer:

C. Yes, since the mistake would be obvious to a reasonable person.

Explanation:

A unilateral mistake <u>occurs when only one party is mistaken as to the subject matter</u> or the terms contained in the contract agreement.

<u>The general rule involving unilateral mistakes is that, if the non-mistaken party either knew or should have known of the other party's mistake, the mistake is a “palpable unilateral mistake” which makes the contract voidable</u> by the mistaken party.

Therefore, since Vinny's mistake would have been obvious to the other party, it could make the contract voidable and relieve the store of the liability.

7 0
3 years ago
Read 2 more answers
a building rents for $32 per square foot with an index of 1.6. the index increases to 1.9. what is the adjusted rental rate?
soldi70 [24.7K]

The adjusted rental rate is $41.60.

<h3>What is the adjusted rental rate?</h3>

Price index measure the relative change in prices relative to a base year. Changes in indexes give a measure of inflation in the economy. The rental rate would be adjusted for inflation.

Inflation is when the general price level in an economy increases. Inflation can be as a result of an increase in the demand for goods and services or an increase in the cost of production.

The adjusted rental rate can be determined by first calculating the inflation rate and then increasing the rent for the calculated inflation rate.

Inflation rate = 1.9 - 1.6 = 0.3 = 30%

The adjusted rental rate = (1.3) X $32 = $41.60

To learn more about indexes, please check: brainly.com/question/26382640

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5 0
1 year ago
DAR Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under P
Eddi Din [679]

Answer:

a) Share price of company is $28.20.

b) So value of unlevered firm is $4.512 million.

Explanation:

a.

Share price = Value of debt / (160,000 - 110,000)

= $1,410,000 / 50,000

= $28.20

Share price of company is $28.20.

b.

VAlue of all equity firm = Number of share outstanding × Price per share

= 160,000 × $28.20

= $4.512 million

Value of levered firm is $4.512 million.

Since tax rate is zero, so value of levered firm equal to value of unlevered firm.

So value of unlevered firm is $4.512 million.

6 0
3 years ago
Determinants of how long a firm should borrow money include?
mario62 [17]

Determinants of long a firm should borrow money include are:

⇒the seasonal environment of the business

⇒the cost of inventory

⇒the cash flow forecast

The term "capital structure" describes how a company decides to finance its projects and assets through a combination of internal resources, debt, and equity.

To lower their risk of insolvency, remain effective, and ultimately maintain or become profitable, a company should determine the ideal debt to equity ratio.

The capital structure of a company is influenced by a wide range of variables, including leverage or trading on equity, company growth, the nature and scale of the business, the desire to maintain control, the flexibility of the capital structure, investor requirements, the price to float new securities, the timing of the issue, the corporate tax rate, and the legal requirements.

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4 0
1 year ago
An economy that maximizes its scarce resources and can deliver the right goods in the right quantity to the right people at the
AlekseyPX

Answer: Efficiency.

Explanation:

An economy is said to be efficient if the economy is able to make the best use of the available resources found in that economy, in meeting the needs of consumers within the economy and even exporting to consumers found in other economies.

7 0
3 years ago
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