Normal profit is the return to the entrepreneur when the entire economic profits are equal to zero. Hence, the correct statement is Option A.
<h3>When the business earns normal profits?</h3>
A commercial enterprise may be in a state of normal profit while its economic income is equal to 0, that is why normal profit is also called “zero economic profit.” Normal profit takes place on the factor wherein all sources are being successfully used and could not be put to better use elsewhere.
Hence, Normal profit is the return to the entrepreneur when the entire economic profits are equal to zero. The correct statement is Option A.
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Answer:
Explanation: Both the marginal cost curve and the average variable cost curve are U-shaped. For many firms, this is true because their production exhibits increasing returns at low levels of output and decreasing returns at high levels of output. At the minimum of average cost, the marginal cost curve intersects the average cost curve. This is because when marginal cost is above average cost, average cost is decreasing and when marginal cost is below average cost, average cost is decreasing.
The purchase of a Porsche produced in Germany has a direct effect on net exports
<h3>What is net export?</h3>
Net exports is total export less import. Import is when a good or service is brought into a country from a foreign country. Import reduces the value of the net exports. Export is when a good produced in a country is sold in a foreign country.
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Answer:
Net income= $11,412.2
Explanation:
Giving the following information:
sales of $46,382
interest expense of $3,854
cost of goods sold of $16,659
selling and administrative expense of $11,766
depreciation of $6,415
t=0.35
We need to use the following formula:
Net income= (sales - COGS - selling and administrative expense - interest expense - depreciation) - tax + depreciation
First, we deduct Depreciation to decrease the tax base, but because it is not an actual payment, we have to sum it after tax.
Sales= 46,382
COGS= (16,659)
Gross profit= 29,723
Selling and administrative expense= (11,766)
Interest=(3,854)
Depreciation= (6,415)
EBT= 7,688
Tax= (7,688*0.35)= (2,690.8)
Depreciation= 6,415
Net income= $11,412.2
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