A carpenter produced 200 sofas which he sold at k5000/ sofa, he incurred k5000 on raw materials, he has three labours and he paid k6000 as wages for the three labourers, he does not have a building of his own, and paid k200 as rental fees. The carpenter decided to get a loan from NATSAVE of k250,000 at the interest rate of 20%. He inputed k2000 in january and k1500 in february. using the information given above compute; i. Accounting Profit for the carpenter ii. Economic profit for the carpenter daenvete 0 20 tantrice
A carpenter produced 200 sofas which he sold at k5000/ sofa, he incurred k5000 on raw materials, he has three labours and he paid k6000 as wages for the three labourers, he does not have a building of his own, and paid k200 as rental fees. The carpenter decided to get a loan from NATSAVE of k250,000 at the interest rate of 20%. He inputed k2000 in january and k1500 in february. using the information given above compute; i. Accounting Profit for the carpenter ii. Economic profit for the carpenter daenvete 0 20 tantrice
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![A carpenter produced 200 sofas which he sold at k5000/ sofa, he incurred k5000 on raw materials,
he has three labours and he paid k6000 as wages for the three labourers, he does not have a
building of his own, and paid k200 as rental fees.
The carpenter decided to get a loan from NATSAVE of k250,000 at the interest rate of 20%. He
inputed k2000 in january and k1500 in february.
using the information given above compute;
i. Accounting Profit for the carpenter
ii. Economic profit for the carpenter
Handwritten only pls, otherwise downvote](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb439a630-9648-4f6a-82b5-bf0a0e544f6a%2F268c085c-aed6-4928-a2c8-c62e566a4a76%2Fgloxvvk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A carpenter produced 200 sofas which he sold at k5000/ sofa, he incurred k5000 on raw materials,
he has three labours and he paid k6000 as wages for the three labourers, he does not have a
building of his own, and paid k200 as rental fees.
The carpenter decided to get a loan from NATSAVE of k250,000 at the interest rate of 20%. He
inputed k2000 in january and k1500 in february.
using the information given above compute;
i. Accounting Profit for the carpenter
ii. Economic profit for the carpenter
Handwritten only pls, otherwise downvote
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