4 Last year Alice worked as a consultant. She hired anadministrative assistant for $17,000 per year and rentedoffice space (utilities included) for $2,600 per month. Hertotal revenue for the year was $105,000. If Alice hadn'tworked as a consultant, she would have worked at a realestate firm earning $40,000 a year. Last year, Alice's---_ and her economic profitA. $88,000; $65,000 B. $73,800; -$40,000accounting profit waswasC. $85,400; $62,400 D. $56,800; $16,80

Solution:- Accounting Profit means the profit earned in monetary terms, while on the other hand,…

Answered: 4 Last year Alice worked as a…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

Assume that a carpenter borrowed $2,000 to be paid offin a year to finance a machine that would make him workfaster. As a result, she is able to take on more projects andcollect $400 more earnings in the first year, after paying offthe principal of $2,000. However, there is a 15% rental fee(interest) on her loan, which she also has to pay off. Whatis the carpenter’s net earnings for the first year? (Roundyour response to the nearest dollar.)
You have started your own bakery and you are the sole employee. Your total revenue was $100,000. Your costs for equipment, rent, and supplies were $60,000. To start this business you invested an amount of your own capital that could pay you a $80,000 a year return. During the year your the costs needed to calculate economic profit were a.60,000 b.80,000 c.140,000 d.100,000 which one?
Suppose you decided to open your own bakery business. At the start of the year you took $18,477 out of you saving account, where the money had been earning an interest rate of7%, and you used it to purchase ovens and other equipment needed for the bakery. You also quit your job where you were earning $55,787 per year. Over the course of the year you spent $8,102 on ingredients like flour and sugar, $40,316 on the salaries of two employees, $15,214 on rent for you bakery space and $14,150 on other miscellaneous like electricity, packaging and office supplies. Over the course of the year you sold 22,340 bakery items (cakes, pies and so on) at an average price of $8 each. What was your accounting profit last year?
6. Last year Bill Bailey quit his $20,000 per year job and invested $200,000 to open the Bargain Bonanzas. This year he sold for $600,000 merchandise he bought for $400,000. He paid his sales clerks $50,000. Bill could have earned 10 percent interest on other investments. This year, Bill's: a. accounting and economic profit were both $150,000 b. economic loss was d. economic profit was $220,000 less than his accounting profit
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B. Word Problems for Income and Profit: Solve the following showing your solutions 1. Aletta's annual salary of $58,800 is paid weekly. She is paid at time and a half for any overtime beyond her regular workweek of 35 hours. What is her gross pay for a week in which she works 39 hours?
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