at the beginning of the year, an audio engineer quit his job and gave up a salary of $175,000 per year to start his own business sound devices, inc. the new company builds, installs and maintains cust

Project Description:

4. at the beginning of the year, an audio engineer quit his job and gave up a salary of $175,000 per year to start his own business sound devices, inc. the new company builds, installs and maintains custom audio equipment for businesses that require high-quality audio systems. a partial income statement for the first year of operation for sound devices inc. is shown below:
attachment
to get started the owner of sound devices, inc. spent $100,000 of his personal savings to pay for some of the capital equipment used in the business. during the first year of operation, the owner of sound devices, inc. could have earned a 15% return by investing in stocks of other new businesses with risk level similar to the risk level at sound devices, inc.

a. what are the total explicit, and total implicit, and total economic costs for the year?

b. what is accounting profit?

c. what is economic profit?

d. given your answer in part c, evaluate the owner’s decision to leave his job to start sound devices inc.
Skills Required:
Project Stats:

Price Type: Fixed

Project Budget: $0 to $10
Expired
Total Proposals: 1
1 Current viewersl
11 Total views
Project posted by:

Proposals

Proposals Reputation Price offered
  • 4.6
    648 Jobs 468 Reviews
    $20 in 2 Days