Savannah resigns from her position at Facebook paying 50,000 per year to start a ranch and...

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Savannah resigns from her position at Facebook paying 50,000 per year to start a ranch and pig farm. She uses the 100,000 she earned 5% on last year as a capital investment; her first year in business she earns 150,000. Annual costs were the following: Rent. 25,000 Utilities. 12,000 Wages. 30,000 Supplies. 20,000 A. Calculate Savannah's accounting profit. B. Calculate Savannah's economic profit. Hint: recall that implicit costs are what you give up AND are quantifiable, too. Lastly, applying the above as an example, come up with numbers and costs from your "fictitious business idea" you've been discussing prior and perform the same calculation as the above. Savannah resigns from her position at Facebook paying 50,000 per year to start a ranch and pig farm. She uses the 100,000 she earned 5% on last year as a capital investment; her first year in business she earns 150,000. Annual costs were the following: Rent. 25,000 Utilities. 12,000 Wages. 30,000 Supplies. 20,000 A. Calculate Savannah's accounting profit. B. Calculate Savannah's economic profit. Hint: recall that implicit costs are what you give up AND are quantifiable, too. Lastly, applying the above as an example, come up with numbers and costs from your "fictitious business idea" you've been discussing prior and perform the same calculation as the above.

Answer rating: 100% (QA)

A Savannahs accounting profit is calculated by subtracting her explicit costs from her revenue Revenue 150000 Explicit costs 25000 12000 30000 20000 8... View the full answer