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lutik1710 [3]
3 years ago
15

Assume you gave up a $60,000 per year job at an accounting firm to start your own tax preparation business. To simplify, assume

your tax personal obligations are the same whether you run your own firm or work for another firm. If your revenue during the first year of business is $75,000, and you incurred $5,000 in expenses for equipment and supplies, how much is your accounting profit
Business
1 answer:
Rasek [7]3 years ago
3 0

Answer:

Accounting profit= $70,000

Explanation:

Giving the following information:

If your revenue during the first year of business is $75,000, and you incurred $5,000 in expenses for equipment and supplies, how much is your accounting profit

<u>The accounting profit does not include the opportunity cost of leaving the accounting job. In this case, the accounting profit is:</u>

Accounting profit= revenue - costs

Accounting profit= 75,000 - 5,000

Accounting profit= $70,000

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Chicken and tuna fish are substitutes in consumption. Suppose that new technology decreases the cost of catching tuna. This woul
mihalych1998 [28]

Answer:

B. a decrease; a decrease

Explanation:

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3 years ago
Initial Outlay -$5,000 Year 1 $3,000 Year 2 $3,500 Year 3 $3,200 Year 4 $2,800 Year 5 $2,500. a. What is the PI if the discount
kkurt [141]

Answer:

a. What is the PI if the discount rate is 20%?

profitability index = present value of cash flows / initial outlay

PI = $9,137.41 / $5,000 = 1.83

b. What is the NPV if the discount rate is 20%?

NPV = -$5,000 + $9,137.41 = $4,137.41

c. What is the IRR if the discount rate is 20%?

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IRR = 55.23%

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7 0
3 years ago
Thomlin Company forecasts that total overhead for the current year will be $15,500,000 with 250,000 total machine hours. Year to
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Answer:

The predetermined overhead rate based on machine hours is $62

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\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate

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