1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
amm1812
3 years ago
8

Suppose winston's annual salary as an accountant is $60,000, and his financial assets generate $4,000 per year in interest. one

day, after deciding to be his own boss, he quits his job and uses his financial assets to establish a consulting business, which he runs out of his home. to run the business, he outlays $8,000 in cash to cover all the costs involved with running the business, and earns revenues of $150,000. what are winston's economic profits
Business
1 answer:
DedPeter [7]3 years ago
6 0

Economic profit is calculated as:

Economic profit = Total Revenues – Total Cost

Total cost both includes explicit and implicit cost. In this case, the explicit cost is $8,000 while the implicit cost is $64,000. Explicit cost is a direct payment made to run the business while implicit cost is the opportunity as accountant that is lost. Therefore,

Economic profit = $150,000 – ($8,000 + $64,000)

<span>Economic profit = $78,000</span>

You might be interested in
Wilmington Company has two manufacturing departments--Assembly and Fabrication. It considers all of its manufacturing overhead c
leva [86]

Answer:

1. $3,380

2. $2,175

Explanation:

Part 1

Predetermined overhead rate = Total Overheads for the Company ÷ Total  Direct labor-hours for the Company

                                                  =  $ 15,080,000 ÷ 232,000

                                                  = $65

Overheads applied to Job Bravo = ( 30 x $65) + (22 x $65) =  $3,380

Part 2

<em>Assembly department</em>

Predetermined overhead rate =  $ 7,250,000 ÷ 145,000

                                                  = $50

<em>Assembly department</em>

Predetermined overhead rate =  $ 7,830,000 ÷ 290,000

                                                  = $27

Overheads applied to Job Bravo = (30 x $50) + (25 x $27) = $2,175

3 0
3 years ago
If you lived on a fixed income how would you be affected by inflation
choli [55]

Answer:

Increase of he cost of living VS stagnaition of income

Explanation:

Having a fixed income that is not adjusted by inflation affects the quality of living as year by year the cost of goods and services will rise but the income will remain the same. Therefore it is a matter of time until the income wont be  enough to pay all the expenses and costs.

5 0
3 years ago
Give description of a recent (2019-2021)example of how this problem has displayed in Southafrica
Gemiola [76]
South africa’s is a cool place,
7 0
2 years ago
White Sands Heavy Equipment Co. produces industrial equipment that it sells through its national sales force.
Tcecarenko [31]

Answer:E. a flexible price policy

Explanation:

The flexible price policy is a bargaining system between the buyer and seller to trade together at an agreed price.

The FOB seller factory price policy means where the ownership of the goods transferred to buyer, Robinson's act is only to prevent price discrimenation in the retail industry from the producers, a skimming price policy makes use of dual prices whithin a time interval, a status quo pricing objective is to maintain homogeneous price in the market among the sellers.

3 0
3 years ago
Economists generally believe that rent control is
dangina [55]

Answer:

D) An efficient and fair way to help poor

<h3><u>Hope </u><u>this </u><u>helps </u><u>you </u></h3>

8 0
3 years ago
Other questions:
  • Comans Corporation has two production departments, Milling and Customizing. The company uses a job-order costing system and comp
    10·1 answer
  • Suppose the daily change in price of a stock is normally distributed with mean = .20 and standard deviation = .30. What price ch
    6·1 answer
  • Jessica experienced an increase in her income by 10% this year. In the same year, Jessica's quantity demanded of milk increased
    10·1 answer
  • Adam elects the accrual method of accounting for his business.
    15·1 answer
  • Coach Bjourn Toulouse led the Big Red Herrings to several disappointing football seasons. Only better recruiting will return the
    14·1 answer
  • JRE2 Inc. entered into a contract to install a pipeline for a fixed price of $2,200,000. JRE2 recognizes revenue upon contract c
    11·1 answer
  • Based on the financial information and henry’s Preferred lifestyle what do you recommend for Henry - should he rent the apartmen
    13·1 answer
  • Janitor supply produces an industrial cleaning powder that requires 40 grams of material at $0.10 per gram and .25 direct labor
    10·1 answer
  • DRK, Inc., has just sold 110,000 shares in an initial public offering. The underwriter’s explicit fees were $66,000. The offerin
    12·1 answer
  • What concept of scarcity refers to what idea​
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!