Gino is a computer programmer who earned $30,000 in 2019. But on January 1,2020 he opened a body board manufacturing business.Question Facts1. Gino stopped renting out his cottage for $3,000 ayear and used it as his factory.2. The market value of the cottage increased from$96,000 to $104,000.3. He spent $5,000 on materials, phone, utilities, etc.At the end of 2020, Gino submitted the information on the right to his accountant.Use the question facts to calculate Gino's opportunity cost of production andeconomic profit.4. He leased machines for $12,000 a year.Gino's opportunity cost of production isO A. $50,250O B. $31,8005. He paid $10,000 in wages.6. He used $5,000 from his savings account, whichearns 5 percent a year interest.7. He borrowed $60,000 at 8 percent a year from thebank.OC. $87,0008. He sold $240,000 worth of body boards.9. Normal profit is $25,000 a year.O D. $82,050Gino's economic profit isO A. $208,200O B. $189,750OC. $25,000O D. $157,950(.....

Explicit cost is the actual monetary expenditure Implicit cost is the opportunity cost of doing any…

Answered: Gino is a computer programmer who…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Why is it essential to keep a close eye on fixed expenses?
Question 5 of 16 Sandra's company has a machine that can produce a maximum of 45,000 components per annum. She sells each component for $5.30. The fixed costs are $35,000 per annum and variable costs are $0.42 per component. a. What is the break-even volume? Round up to the next whole number b. What is the break-even revenue? Round to the nearest cent c. What is break-even as a percent of capacity per annum? % Round to two decimal places if necessary d. If she produced and sold 23,600 components in a year, what was the profit made or loss incurred? Express the answer as a positive number for profit and negative number for loss, rounded to the nearest cent e. What is the maximum profit per year that she can expect from her company?
._______ A person or organization purchasing a franchise.
A Edit Fermat Table 12pt Pargraph BI ất 0owords | Question 13 5. You are running a non-location bound business in downtown Birmingham. This means that you can move your business anywhere you like. You own the current building in downtown. Therefore, there is no mortgage payment, you don't pay rem etc for your building. Knowing that rents are pretty high in the downtown area, does it make sense for you to run your busin in downtown? Which of the below concepts would help you to make the wisest decision? decreasing cost, increasing cost, unit cost average total cost, constant cost Opportunity cost, economic cost, accounting cost, implicit cost explicit cost O variable cost, fixed cost, average variable cost Question 14
2. Exercise 8.2 Howard Bowen is a large-scale cotton farmer. The land and machinery he owns has a current market value of $12 million. Bowen owes his local bank $9 million. Last year Bowen sold $11 million worth of cotton. His variable operating costs were $9 million; accounting depreciation was $40,000, although the actual decline in value of Bowen's machinery was $60,000 last year. Bowen paid himself a salary of $50,000, which is not considered part of his variable operating costs. Interest on his bank loan was $400,000. If Bowen worked for another farmer or a local manufacturer, his annual income would be about $30,000. Bowen can invest any funds that would be derived if the farm were sold to earn 10% annually. (Ignore taxes.) What is Bowen's accounting profit? O $1,560,000 O $1,550,000 O $1,220,000.00 O $1,210,000.00 What is Bowen's economic profit? O $1,550,000 O $1,210,000.00 O $1,560,000 O $1,220,000.00
QUESTION FOUR (a There are disputes sometimes even after the goods have been delivered. Explain five ways ofhow the goods can successfully delivered.b Explain the five remedies of a breached contract. c Last year Katie bought a car from Oliver for ZMK35,000 to be paid in two instalments ofZMK1,750. Katie did not pay the second instalment when it was due. She never disputed thatshe owed Oliver this money.Oliver felt sorry for Katie, who lost her job not long after buying his car. He told her that ifshe paid him the half of what she owed him (ZMK8,750) by the following Wednesday, hewould let her off with the rest.Katie paid him the ZMK8,750 on the following Tuesday. She also gave him a bottle of wine“in consideration of his kindness”.On the Friday Katie was notified that she had been successful in one of her job applicationsand would be starting work at a much better salary than her old job on the First of the Month.Oliver has heard about Katie’s new job and realizes that she is likely…
ЕОС 13.5B Morgan took $400 000 out of their savings account to start an ice cream stand. The savings account paid 5% interest. In the first year, Morgan sold 12,000 batches of ice cream at a price of $3 each, and incurred costs of $12,000 which involved outlays of money. What was Morgan's economic profit in the first year?
A firm is technically insolvent when: Multiple Choice it files the legal forms petitioning for bankruptcy protection. it has a negative net worth on its balance sheet. the value of its stock declines by more than 50 percent in any given 12-month period. it is unable to meet its financial obligations. the value of the firm's assets is less than the value of the firm's liabilities.
1
In what ways does Kevin's demand for up-front royalty payments affect Proof's ability to grow organically through revenues ? Kindly put some numbers in your answer as example.
A firm had sales revenue of $ 1million last year.It spent $600, 000 onlabor,$150,000 on capital and $200,000on materials. What was the firm’s accounting profit?
Only typed answer and please don't use chatgpt Edmonton Lighting is a store that sells light fixtures. They employ 12 permanent workers as well as 6 temporary workers to cover the holiday season traffic with enough office furniture to accommodate up to 20 employees. The company has invested $5,000 in Treasury bills and has $1,000 in outstanding trade credit. Which of these is a fixed asset? Multiple Choice permanent workers office furniture trade credit temporary workers Treasury bills

SEE MORE QUESTIONS

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

Principles of Economics (MindTap Course List)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:

Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…

Economics

ISBN:

9781259290619

Author:

Michael Baye, Jeff Prince

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS