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Zippy is earning $25,000 per year working for Joe's Car Repair. He also has savings of $150,000, on which he is earning 10% annual interest. He decides to leave Joe's Car Repair to invest his savings in starting his own car repair business.
In the first year, Zippy's Speedy Car Repair ears revenues of $200,000 and has explicit costs of $100,000.
Zippy's economic profit (or loss) in the first year is $. (round your answer to the nearest dollar. )
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- Jaime owns and manages a café in Collegetown whose annual revenue is $5,000. Annual expenses are as follows: Labor Expense Food and drink Electricity Vehicle lease Rent Interest on loan for equipment Amount $2,000 500 100 150 500 1,000 a. Calculate Jaime's annual accounting profit. $ b. Suppose Jaime could earn $1,000 per year as a recycler of aluminum cans, but she prefers to run the café. In fact, she would be willing to pay up to $275 per year to run the café rather than to recycle. Is the café making an economic profit? , (Click to select) the café is making an economic (Click to select) of $ Should Jaime stay in the cafe business? (Click to select) per year. c. Suppose the café's revenues and expenses remain the same, but recyclers' earnings rise to $1,100 per year. Is the café making an economic profit? (Click to select) ✓ the café is making an economic (Click to select) of $ per year. Should Jaime stay in the café business? (Click to select) d. Suppose Jaime had not had gotten a…1.5) You use RM50,000 of your own money to start an espresso stand. During the first year you earn a 10% return on that investment. If the current interest rate on savings is 8%, you earn an economic profit of Working Calculation:Question 5 Your uncle is thinking about opening a wine bar. He estimates that it would cost $400000 per year to rent the location and buy the stock. In addition he would have to quit his $120000 per year job as an accountant. Suppose your uncle thought he could sell $600000 worth of wine in a year. Which statement is true? His economic profit is $80000 which is less than he earns as an accountant so he should not open the wine bar Total cost of running the wine bar is $400000 and he should open the store since his economic profits would be $180000. Total cost of running the wine bar is $520000 and he should open the bar since his economic profits will be positive. His accounting profits are $80000 which is still enough to make it worth opening the wine bar
- The table below shows the information on Ilham Bakery. Item AmountRevenue in operating the bakery shop RM 80 000Income that could have been earned if working as an employee to others RM 7 000Utility cost RM 1 200Salary of workers RM 15 000Cost of raw materials RM 20 000 What is the economic profit?Willie Wheat decides to produce 150 bushels of wheat. Based on the revenue and cost information below, they will earn profit of Quantity Total 0 50 100 150 200 250 300 140 170 190 150 Revenue 10 250 500 750 1,000 1,240 1,500 Fixed Cost 300 300 300 300 300 300 300 Variable Cost 0 100 190 310 510 820 1111 Total Cost 300 400 490 610 810 1,120 1,200 1.500 ProfitQ9 ABC is a small business producing instructional modules for disabled children in public schools. The modules produced by ABC are not differentiated and the market price is $1,300 per module. ABC operates in a small office that rents for $600 a month and leases computer equipment that costs $480 per month. The chart lists other cost of production. Output (Q) Fixed (Instructional Cost Modules Per month) 0 1 2 3 4 5 6 7 8 9 10 Variable Total Average Average Cost Cost Fixed Variable (TC) Cost (AFC) (FC) (VC) 1,080 400 1,350 1,900 2,500 4,100 5,400 7,300 1,480 2,430 4,280 10,880 216 135 Cost (AVC) 475 Average Total Cost (ATC) 965 Marginal Cost (MC) 400 450 700 1) Complete the chart and plot the following graphs: AFC, AVC, ATV, MC. Be sure to label axis and graphs. 2) How many instructional modules ABC will produce, assuming it is profit- maximizer? Explain your answer and show that on the graph. 3) Determine ABC's profit and shade the profit on the graph. 4) Given the level of ABC's…
- Nicole purchased a new printing machine and started a small printing shop. As per her calculations, to earn revenue of $6,000 per month, she needs to sell printouts of 27,000 sheets per month. The printing machine has a capacity of printing 35,300 sheets per month, the variable costs are $0.03 per sheet, and the fixed costs are $2,200 per month. a. Calculate the selling price of each printout. Round to the nearest cent b. If they reduce fixed costs by $310 per month, calculate the new break-even volume per month. Round up to the next whole number c. Calculate the new break-even volume as a percent of capacity. ↑ % →Peter runs a small local newspaper company. He can sell a newspaper at $2. He has fixed costs of $10,000. His variable costs are $1,500 for the first thousand newspapers, $1000 for the second thousand, and then $600 for each additional thousand newspaper.Can he make profit at current market price? What is the breakeven price in this business (assuming maximum production at 10,000 newspaper)?please determine and relate any three technological inventions that could have an impact on Santa Cruz Guitar Co. business functioning.
- “ ANTHONY GUERRERO’S DILEMMA” When it comes to being a machinist, Anthony was a true craftsman. Anthony had heard almost everything he knew about Daniel, his first and only boss. Anthony was married with three young children. He was 33 years old and had served for Daniel since he had completed his military service. Within 12 years, Anthony had perfected his talents under the watchful and analytical eye of Daniel. Daniel was able to acknowledge Anthony talent for business. Anthony had a positive attitude about education and a desire towards excellence that Daniel respected. Daniel Machine Shop was a successful small company. Its performance was mainly based on the reputation for quality that had been developed in its 42 years of operation. Daniel and his new wife, Sheryl, came to this country when he was in his late twenties. Today, the enterprise was a success, but Daniel recalled the early years when he and Sheryl had to struggle. Daniel wanted the company to continue producing the…The firm with total revenues of a 100 million explicit cost of 90 million and implicit cost of 20 million. Calculate the accounting profit or loss as well the economic profit or lossPlease answer letter B. Georgina is the owner and manager of a small café with monthly sales of 50,000 HK dollars and a monthly expenses of 42,500 HK dollars. Thus, having an accounting profit of 7,500 HK dollars. A. She could make 10,000 HK dollars a month somewhere else. She does, however, favor running the café. In fact, she would prefer to run the café than do anything else and would even pay up to 2,750 HK dollars per month. Is the café generating a profit, and should she continue running her business? B. Suppose the cafe’s revenues and expenses stay the same, but Georgina can now earn 11,000 HK dollars per month somewhere else. Is the cafe still making a profit? Explain.
