6) Bella has a lawn maintenance business that generates $55,000 in revenue annually and $9,000 in...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
6) Bella has a lawn maintenance business that generates $55,000 in revenue annually and $9,000 in expenses for equipment, supplies, gasoline, and advertising. Bella has received two full-time job offers and turns both down. Job A pays $60,000 a year and the other pays $40,000 a year. Bella cannot run her lawn maintenance business and work at the same time. Also, since both job offers are full-time, she could only work one job. Based on this information, what are the accounting profits of Bella's lawn maintenance business What are the economic profits? 7) You are looking to purchase a new refrigerator for the company's lounge. You find an energy efficient model that sells for $1,850 and will save $48 a year in electricity costs at the end of the next five years. The standard model cost $1,600. Assuming your opportunity cost (same thing as discount rate or interest rate) for funds is 6%, which refrigeration should you purchase? 8) Why should decision be made using marginal (incremental) analysis, comparing the marginal benefits to the marginal costs of a particular decision? 6) Bella has a lawn maintenance business that generates $55,000 in revenue annually and $9,000 in expenses for equipment, supplies, gasoline, and advertising. Bella has received two full-time job offers and turns both down. Job A pays $60,000 a year and the other pays $40,000 a year. Bella cannot run her lawn maintenance business and work at the same time. Also, since both job offers are full-time, she could only work one job. Based on this information, what are the accounting profits of Bella's lawn maintenance business What are the economic profits? 7) You are looking to purchase a new refrigerator for the company's lounge. You find an energy efficient model that sells for $1,850 and will save $48 a year in electricity costs at the end of the next five years. The standard model cost $1,600. Assuming your opportunity cost (same thing as discount rate or interest rate) for funds is 6%, which refrigeration should you purchase? 8) Why should decision be made using marginal (incremental) analysis, comparing the marginal benefits to the marginal costs of a particular decision?
Expert Answer:
Related Book For
South-Western Federal Taxation 2018 Comprehensive
ISBN: 9781337386005
41st Edition
Authors: David M. Maloney, William H. Hoffman, Jr., William A. Raabe, James C. Young
Posted Date:
Students also viewed these banking questions
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
George bought the following amounts of Stock A over the years: (Loss amounts should be indicated with a minus sign.) Number of Adjusted Basis $ 7,200 6,270 Date Purchased Shares Stock A 11/21/1993...
-
On January 1, 2014, P Company purchased an 80% interest in S Company for $600,000, at which time S Company had retained earnings of $300,000 and capital stock of $350,000. Any difference between book...
-
In line 16 of RB-INSERT, we set the color of the newly inserted node z to red. Observe that if we had chosen to set zs color to black, then property 4 of a red black tree would not be violated. Why...
-
True or False: Multiple roots can exist when using IRR and MIRR methods.
-
Rocket Company produces small gasoline-powered engines for model airplanes. Mr. Clemens, Rockets CFO, has presented you with the following cost information: Direct Materials Inventory, beginning.......
-
Pawan is pursuing MBA and shares a room with you in the private hostel. He desperately needs a job after completing his course because of educational loan and weak economic background. In his last...
-
Prove that function f given by f(x) = log (cos x) is strict TC and strictly increasing on ( TO 2 decreasing on 0, (0, 7) 2
-
Write a program in c++ , gcd of two no. Using recursion
-
Y M Qassiniboine community college X Th Dashboard t M Question 1-Chapter 12 Assign + O https://eato.mheducation.com/ext/map/index.htm? con-coneternal browser-08aunchrishmp%253A%25 Chapter 12...
-
The BLT Story : beginning in the 1950's, the market for pork bellies at Chicago's Board of Trade saw the development of speculative activity, especially around late summertime. Tomatoes ripen in late...
-
If a share of stock just paid a $2.30 dividend, growing at 2.9% per year. Given an expected return of 9%, what is a fair price for the share of stock?
-
You work in Hong Kong for a Swiss-owned firm. The Swiss are known for their high uncertainty avoidance. What differences might you expect to see from your Swiss bosses compared with your Hong Kong...
-
Identify the principal causes of globalisation, what is the sceptital views of globalisation evaluate the agruments made by sceptics in relation to gloablisation ?
-
What are the key dimensions of critical thinking 2. Watch the NBC Learn video on Diet Scams. What types of claims are made in this video Are they valid Elaborate on your responses. Discuss this video...
-
As to the alternate valuation date for asset transfers at death, comment on the following. a. The justification for the election. b. The main heir prefers the date of death value. c. An estate asset...
-
Lynn, age 45, is single and has no dependents. Her income and expenses for the current year are reported as follows. Income Salary .......................................................................
-
For 2017, Essence Company, a calendar year taxpayer, will change from using the cash method for tax purposes to the accrual method. At the end of 2016, Essence had the following items: Accounts...
-
Enter up a columnar purchases day book with columns for the various expenses for J. Still for the month from the following information on credit items. 2016 January f 1 Bought goods from H. Graham...
-
A Enter up a columnar purchases day book with columns for the various expenses for F. Graham for the month from the following information on credit items. 2016 June Bought goods from J. Syme 4 Bought...
-
Enter up the relevant accounts in the purchases and general ledgers from the columnar purchases day book you completed for Review Question 20.4A. Data From Review Question 20.4A 20.4A Enter up a...
Study smarter with the SolutionInn App