Dalong is the owner of a furniture store. Last year, their total revenue was $160,000, their...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Dalong is the owner of a furniture store. Last year, their total revenue was $160,000, their rent was $18,000, their labor costs were $57,000, and their overhead expenses were $52,000. Dalong could earn $15,000 per year working at another nearby furniture store. From this information, we know that their economic profit was: A seller earns $60,000 in total revenue. Their implicit costs of production are $40,000 and their explicit costs of production are $20,000. How much accounting profit did they earn? $ Suppose that a firm produces 600 units a year and sells them all for $200 each. The explicit costs of production are $87,000 and the implicit costs of production are $10,000. How much is the firm's accounting profit? Dalong is the owner of a furniture store. Last year, their total revenue was $160,000, their rent was $18,000, their labor costs were $57,000, and their overhead expenses were $52,000. Dalong could earn $15,000 per year working at another nearby furniture store. From this information, we know that their economic profit was: A seller earns $60,000 in total revenue. Their implicit costs of production are $40,000 and their explicit costs of production are $20,000. How much accounting profit did they earn? $ Suppose that a firm produces 600 units a year and sells them all for $200 each. The explicit costs of production are $87,000 and the implicit costs of production are $10,000. How much is the firm's accounting profit?
Expert Answer:
Answer rating: 100% (QA)
1 To calculate the economic profit we need to consider both the explicit costs direct financial outl... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
1. Hannah is applying for a life policy on her girlfriend Sarahs life. The policy is $500,000 and carries a large premium. Hannah is the main earner, so she is concerned about not being able to pay...
-
Economic Rent and Profiting from Entrepreneural Skill: Suppose, as in exercise 14.4, that you are operating a hamburger restaurant that is part of a competitive industry. Now you are also the owner,...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
SharpCo operates a large grocery store. On 1 October 2022, SharpCo purchased and installed a new security system at a cost of $200,000 (excluding GST) with an effective life of 10 years, SharpCo does...
-
Score More Sports uses the LIFO inventory method. Score More Sports started December with 10 helmets that cost $54 each. On December 19, Score More Sports bought 15 helmets at $52 each. On December...
-
List the reasons why Google has been considered a particularly attractive firm to work for. Are all of these associated with perks?
-
The following information is available for the Dixon Company for the second quarter of 2005. Required: Prepare a cash budget for the second quarter of 2005. Apr May Jun Budgeted Receipts from Credit...
-
Nascar Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2008 are: The selling price per vehicle is $24,000. The budgeted level of production...
-
Abernathy Enterprises is considering replacing the existing press with a more efficient press. The new press costs $65,000 and requires $15000 in installation costs. The old press was purchased 4...
-
The COVID-19 pandemic affected companies in the food industry in unique ways, particularly during 2020. Ruth's Hospitality Group (Ticker: RUTH) develops and operates fine dining restaurants under the...
-
The gas phase catalyzed reaction given below is irreversible and iscarried out in a differential reactor. (i) What is the reaction mechanism and (ii) Calculate the parameters of the rate law....
-
Friends Chantelle and Charity were driving around and exploring a bad part of town. Charity was driving. A car pulled up next to them at a red light. The driver of the other car said, "you bitches...
-
Two assets are purchased for $16000 each. Asset C is depreciated over 4 years using the straight line method and asset B is depreciated at the rate of 25% per annum on the reducing balance. What is...
-
M Limited is evaluating three possible investment projects and uses a 10% discount rate to determine their net present values. A [N$',000) B [N$',000) C (N$'000) Initial investment 400 450 350...
-
Why do managers insist on allocating overhead costs to products?please discuss briefly the reason why manager insist?
-
Where most of the overheads are cost to keep factory running,ABC is likely to be of little use. What does it mean by this statement? Can you explain this? Thankyou so much.
-
The Everly Equipment Company's flange - lipping machine was purchased 5 years ago for $ 4 0 , 0 0 0 . It had an expected life of 1 0 years when it was bought and its remaining depreciation is $ 4 , 0...
-
The Heese Restaurant Group manufactures the bags of frozen French fries used at its franchised restaurants. Last week, Heeses purchased and used 101,000 pounds of potatoes at a price of $ 0.70 per...
-
Lancer Audio produces a high-end DVD player that sells for $1,300.Total operating expenses for the past 12 months are as follows: Required a. Use regression analysis to estimate fixed and variable...
-
What is the difference between manufacturing and nonmanufacturing costs? Explain with examples.
-
Would an unexpected increase in sales and production result in underapplied or over- applied overhead? Explain.
-
Riley has a daily calorie intake of 2,200 calories and wants to take in \(20 \%\) of their calories as protein. How many calories of protein should be in their daily diet?
-
Find the percentage in the following: 1. Total is 1,000 , percentage of the total is 70 . 2. Total is 500 , percentage of the total is 425 .
-
A store declares a deep discount of \(40 \%\) for an item, which they say will save \(\$ 30\). What was the original price of the item?
Study smarter with the SolutionInn App