Malik owns and operates Malik's Meatloaf Stand, which sells meatloaf by the slice. Use the data...
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Malik owns and operates Malik's Meatloaf Stand, which sells meatloaf by the slice. Use the data in the table provided to answer the questions below. Malik's Meatloaf Stand: January Price per slice Slices sold Explicit cost Depreciation Implicit cost of capital $2 2,000 $400 $100 $200 a. Calculate Malik's Meatloaf Stand's total revenue for January. b. Calculate Malik's Meatloaf Stand's accounting profit for January. c. What additional information does Malik need in order to determine whether or not to continue operating the Meatloaf Stand? d. Suppose these numbers remain unchanged in the long run. Explain how Malik will determine whether or not to continue operating the business in the long run on the basis of these numbers. (4 points) Malik owns and operates Malik's Meatloaf Stand, which sells meatloaf by the slice. Use the data in the table provided to answer the questions below. Malik's Meatloaf Stand: January Price per slice Slices sold Explicit cost Depreciation Implicit cost of capital $2 2,000 $400 $100 $200 a. Calculate Malik's Meatloaf Stand's total revenue for January. b. Calculate Malik's Meatloaf Stand's accounting profit for January. c. What additional information does Malik need in order to determine whether or not to continue operating the Meatloaf Stand? d. Suppose these numbers remain unchanged in the long run. Explain how Malik will determine whether or not to continue operating the business in the long run on the basis of these numbers. (4 points)
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a Total Revenue TR is calculated by multiplying the price per slice by the quantity sold TR Price pe... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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