The accounting profit of Jarod based on the information regarding rent, wages, etc given will be $55000.
It should be noted they the formula for calculating accounting profit will be:
= Total revenue - Explicit cost
Total revenue will be:
= $65 × 4000
= $260,000
Explicit cost is the direct cost that a business spends. This will be:
= $60000 + $120000 + $25000
= $205,000
Therefore, the accounting profit will be:
= $260000 - $205000
= $55,000
The accounting profit is $55000.
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Answer:
A. $115,291.30
B. $421,536.55
C. $1,471,502.67
Explanation:
The expression that describes the final amount of a $15,000 investment compounded annually for 35 years is:
A. 6% per year
i = 0.06
B. 10% per year
i = 0.10
C. 14% per year
i = 0.14
Each unit sells: $80
Each unit costs to make: $32
Fixed costs: 72,000
Goal: 2,000 units sold
If they meet their goal, let's see how that would go:
(2,000 * 80) - (2,000 * 32) - 72,000 = ?
160,000 - 64,000 - 72,000 = 24,000
24,000 is the profit they would make for hitting their goal.
Question 1:
What is the break-even point? The break-even means they make no money, but they also lose no money. So that final number (24,000) would be 0 instead. How many units would they have to make to hit zero?
(x * 80) - (x * 32) - 72,000 = 0.
80x - 32x = 72,000
48x = 72,000
x = 1500 units
We can verify by using our first formula we've already determined, using this new value for units.
(1,500* 80) - (1,500 * 32) - 72,000 = ?
120,000 - 48,000 - 72,000 = 0? True!
Question 2: If they increase their expenses by 16,000, what is their new break even point?
(x * 80) - (x * 32) - 72,000 - 16000 = 0.
80x - 32x - 88000 = 0
48x = 88000
x = 1833
Question 3: 10% reduction in selling price and 10% increase in sales. (Assuming based off the original formula the problem provided.)
Original: (2,000 * 80) - (2,000 * 32) - 72,000 = ?
10% Reduction in price: 8
80-8 = 72
10% increase in sales: 200
2000 + 200 = 2200
Plugin to our formula:
(2200 * 72) - (2200 * 32) - 72,000 = ?
158400 - 70400 - 72,000 = 16,000
Since this number is positive, this is income. (D)
Answer:
Purchases is $3400 million
Explanation:
Cost of goods formula comes readily helpful in this case.
Cost of goods sold=beginning inventory+purchases-ending inventory
by arranging the formula,the purchases formula is given thus:
Purchases=cost of goods sold-beginning inventory+ending inventory
cost of goods sold is $2,900 million
ending inventory is $4,600 million
beginning inventory is $4,100 million
purchases=($2,900-$4,100+$4,600) million
purchases=3400 million
