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castortr0y [4]
2 years ago
5

Ernesto owns a house painting company. Total sales for the past year were $75,000. His bills for running the business were $30,0

00. Stan, who owns a furniture-making company, previously asked Ernesto to come work for him at a salary of $40,000. Ernesto's accounting profit is______ and his economic profit is ________$
Business
1 answer:
pentagon [3]2 years ago
7 0

Answer:

Accounting profit = $45,000

Economic profit = $5,000

Explanation:

The computation of accounting profit and economic profit is shown below:-

Accounting profit = Sales - External expenses

= $75,000 - $30,000

= $45,000

Economic profit = Accounting profit - Implicit cost

= $45,000 - $40,000

= $5,000

Therefore for computing the accounting profit and economic profit we simply applied the above formula so that each one could arrive

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If the dollar falls by 20% against the euro and rises by 10% against the yen, which of the following values for European and Jap
Black_prince [1.1K]

Answer:

Europe: 50% Japan 50%

Europe: 40% Japan 60%

Europe: 60% Japan 40%

None of these values is consistent with this increase

Explanation:

8 0
3 years ago
Compared to the United States, unemployment rates in Western Europe tend to be: higher because of fewer labor regulations. lower
Snezhnost [94]

Answer:

higher because of fewer labor regulations

Explanation:

  • As compared to the labor wages the employment rates in the western Europe are much higher as to the U.S as they lack incentives and have more labor regulations and thus western European nations have about 4.7 % of the 8.1% of the rates n the U.S as of 2017. May be attributed to the shortage of job market.
7 0
3 years ago
Tamarisks Hardware reported cost of goods sold as follows. 2019 2020 Beginning inventory $ 23,000 $ 33,500 Cost of goods purchas
Pavel [41]

Answer:

$146,500; $194,000

Explanation:

(1) Correct amount of cost of goods sold for 2019:

= Beginning inventory + Cost of goods purchased - Correct ending inventory

= $23,000 + $153,500 - (Ending inventory value - Overstated value)

= $23,000 + $153,500 - ($33,500 - $3,500)

= $23,000 + $153,500 - $30,000

= $146,500

(2) Correct amount of cost of goods sold for 2020:

= Beginning inventory + Cost of goods purchased - Correct ending inventory

= $33,500 + $191,500 - (Ending inventory value - Understated value)

= $33,500 + $191,500 - ($37,500 - $6,500)

= $33,500 + $191,500 - $31,000

= $194,000

6 0
2 years ago
Pelicans Ice is a snow cone stand near the local park. To plan for the​ future, Pelicans Ice wants to determine its cost behavio
zlopas [31]

Answer:

Fixed costs= $2,600

Explanation:

Giving the following information:

January ​6,400 ​$5,980

February ​7,000 ​$6,400

March ​4,000 ​$5,000

April ​6,900 ​$6,330

May ​9,000 ​$8,000

June ​7,250 ​$6,575

<u>To calculate the fixed costs under the high-low method, we need to use the following formulas:</u>

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (8,000 - 5,000) / (9,000 - 4,000)

Variable cost per unit= $0.6 per unit

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 8,000 - (0.6*9,000)

Fixed costs= $2,600

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 5,000 - (0.6*4,000)

Fixed costs= $2,600

4 0
3 years ago
To create a portfolio with duration of 4 years using a 5 year zero-coupon bond and a 3 year 8% annual coupon bond with a yield t
vovikov84 [41]

Answer:

One would have to invest 55%

Duration of 3-year bond is 2.78

Then 5wZ + 2.78(1 - wZ) = 4

2.22wZ = 1.22

wZ = .5495

Explanation:

To properly understand the concept behind the above calculation, let us define some basic concept:

Portfolio:  This can be refereed to as a phrase in finance. It refers to the collection on investment that is being held by an investment company, a financial institution such as a bank ,persons or an individual.

Zero coupon bond: A zero-coupon bond is a bond where the nominal or return on investment (ROI)  value is repaid at the time of maturity. This definition usually reflects a positive time value of money.

We should also recall that the formula for zero coupon bond as:

price = M / (1 + i)^n

where: M = maturity value

i = required interest yield divided by 2

Applying this formula, we were able to arrive at the investment percentage.

5 0
3 years ago
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