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Sati [7]
2 years ago
6

last year, jarod left a job that pays $80,000 to run his own bike repair shop. jarod’s shop charges $65 for a repair, and last y

ear the shop performed 4,000 repairs. jarod’s production costs for the year included rent, wages, and equipment. jarod spent $60,000 on rent and $120,000 on wages for his employees. jarod keeps whatever profit the shop earns but does not pay himself an official wage. jarod used $25,000 of his savings to buy a machine for the business. his savings were earning an annual interest rate of 6 percent.
Business
1 answer:
irinina [24]2 years ago
6 0

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.

Read related link on:

brainly.com/question/25373796

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Harmon opens a new restaurant, which he insures for twice its worth. Knowing his business is insured, Harmon becomes careless in
Arturiano [62]

Answer:

Moral Hazard

Explanation:

Moral hazard is a situation which involves two parties, one party gets involved in a risky event because he knows that it is protected against the risk and that the other party will bear the cost and consequences of his actions if there be any loss. It arises when both the parties have incomplete information about each other.

In the financial market, there is high risk that a borrower may do undesirable things and may not pay back  if he knows that when he defaults, his guarantor might will pay. This can make him  to act with reckless abandon and in a riskier way.

Because Hamon in the Question got insurance that is worth twice his restaurant, he became careless in the management of his restaurant because he believes that if there be any loss, insurance will pay. This is called Moral Hazard in Business.

6 0
2 years ago
The employees at Run Shoes Inc. work in groups that work together by collaborating their skills and cooperating with each other.
tensa zangetsu [6.8K]

Answer:

The correct answer to the following question is work teams.

Explanation:

A work team can be defined as a team where a number of employees would work together ( maybe semi autonomously ) on a task. This type of team would be most useful when there is a constant change in job content and employees are unable to cope with it , so they work in a team . Members of the team would meet regularly to exchange information with each other regarding topic, they would propose new ideas, evaluate  changes , give feedback etc.

4 0
3 years ago
When starting a small business, government agencies such as the Small Business Administration (SBA), the Farmers Home Administra
expeople1 [14]

The government agencies like SBA and farmers' home administration are possible sources of capital. Thus the correct answer is D.

<h3 /><h3>What is capital?</h3>

Capital refers to the total amount of capital assets required to generate goods or services in a business. This amount can be used to start a business, manage daily operations of the business, or grow and extend it.

These institutions the Small Business Administration (SBA), the Farmers Home Administration, the Economic Development Authority, and the Minority Business Development Agency help to provide small businesses with financial assistance in terms of capital and loans and provide training to manage things in the business.

Therefore, option D capital is the correct answer.

Learn more about capital, here:

brainly.com/question/14545977

#SPJ1

5 0
1 year ago
Your client wants to transfer $500 from their checking account into a savings account to cover tax liabilities for sales made th
yan [13]

Answer:

a) Navigate to the + New button then find the Transfer link

Explanation:

In the case when the client wants to transfer $500 from the checking to the saving account so that the liabilities of the tax could be covered. Now the process would be started via navigating it to the new button and then find the transfer link

Therefore the correct option is a

Hence, the rest of the options are incorrect

7 0
2 years ago
The introduction of diet coke by the Coca Cola Company is an example of ________.A) line extensionB) brand harmonizationC) categ
Margaret [11]

Answer:

correct answer is  A) line extension

Explanation:

solution

correct answer is line extension because in  line extension method product is publicize for goods or services under name of well established company so their order to increase the profit

they make change the variety and their flavor

as that Coca Cola Company expand their new Coke options

so correct option is A) line extension

3 0
2 years ago
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