csciahetano
09.11.2019 •
Business
Last year, jarod left a job that pays $60,000 to run his own bike-repair shop. jarod's shop charges $65 for a repair, and last year the shop performed 3,000 repairs. jarod's production costs for the year included rent, wages, and equipment. jarod spent $50,000 on rent and $100,000 on wages for his employees. jarod keeps whatever profit the shop earns but does not pay himself an official wage. jarod used $20,000 of his savings to buy a machine for the business. his savings were earning an annual interest rate of 5 percent. instructions: round your answers to the nearest dollar and include a negative sign if appropriate. a. what is jarod's annual accounting profit? b. what is jarod's annual economic profit?
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Ответ:
(a) $45,000
(b) -$16,000
Explanation:
Accounting profits = Total revenue - Total costs
= ($65 × 3,000) - (100,000 + 50,000)
= $195,000 - $150,000
= $45,000
Economic profits = Accounting profits - Opportunity cost
= $45,000 - [$60,000 + (5% × $20,000)]
= $45,000 - [$60,000 + $1,000]
= $45,000 - $61,000
= -$16,000
Ответ: