In 2011, Toni taught music and earned $20,000. She also earned $4,000 by renting out her basement. On January 1, 2012, she quit teaching, stopped renting out her basement, and began to use it as the office for her new Web site design business. She took $2,000 from her savings account to buy a computer. During 2012, she paid $1,500 for the lease of a Web server and $1,750 for high-speed Internet service. She received a total revenue from Web site designing of $45,000 and earned interest at 5 percent a year on her savings account balance. Normal profit is $55,000 a year. At the end of 2012, Toni could have sold her computer for $500. Calculate Toni's opportunity cost of production and her economic profit in 2012.

In 2011, Toni taught music and earned $20,000. She also earned $4,000 by renting out her basement. On January 1, 2012, she quit teaching, stopped renting out her basement, and began to use it as the office for her new Web site design business. She took $2,000 from her savings account to buy a computer. During 2012, she paid $1,500 for the lease of a Web server and $1,750 for high-speed Internet service. She received a total revenue from Web site designing of $45,000 and earned interest at 5 percent a year on her savings account balance. Normal profit is $55,000 a year. At the end of 2012, Toni could have sold her computer for $500. Calculate Toni's opportunity cost of production and her economic profit in 2012.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter21: Production And Costs

Section21.2: Two Sides To Every Business Firm

Problem 4ST

See similar textbooks

Similar questions

Eustace H. Hogan has been an employee of Major Drilling for the last two years. He uses an office in his basement to fill out orders on the internet, call customers on his cell phone, and do paperwork related to his business. Because Major Drilling doesn't have an office in his city, this is his only place of business. His home office is 200 square feet in size and he thinks his house is 2,000 sqare feet in total size. His home costs for the year are listed below. He does not earn any commissions from his work. How much can be deduct from his employment income? (remember that deductions are negative(xxx.xx)) cell phone $600(used 100% for employment) internet $1,000(used for the whole home) power/hydro $2,000 mortgage principle $6,000(repayment of mortgage) pool installed $20,000(in the backyard)
Pat used to work as an aerobics instructor at the local gym earning $35,000 a year. Pat quit that job and started working as a personal trainer. Pat makes $50,000 in total annual revenue. Pat's only out- of-pocket costs are $12,000 per year for rent and utilities, $1,000 per year for advertising and $3,000 per year for equipment. Please enter your answers as whole numbers with no decimal places (ie. 5000 or $5000 not 5000.00 or "Five thousand dollars"). If you want to enter a negative number use a negative sign "-" and do not use parenthesis (ie. -2000 or -$2000 not (2000) or (-$2000)). What is Pat's accounting profit? What is Pat's economic profit? Did Pat make the right decision by becoming a personal trainer? (Yes or No)
You have been working as a manager of fashion store. During your work you have saved $50,000. You decided to use the money you saved to start your own business. You decided to use the money you saved to buy the materials. You also decided to utilize a store you own to home your business. The store you used for your business could have been rented for year. You hired a clerk to help you in the store that will cost $20,000 per year. The interest you could have earned on the $50,000 you used to buy the materials was $3,000 per year. Furthermore, you decided to manage your own business and you decided to quit your job that was paying $28,000 per yearYou paid $8,000 for utility. What is your explicit cost? Assume that your total sale for the year was $160,000. What is your implicit cost, what is the accounting profit? What is your economic profit?
Uncertain how to solve these sets of problems
Alex Kingsford is a mechanical engineer working for ABC Engineering in Melbourne. Alex owns aproperty in Dandenong, Victorian where he and his family are residing. He also runs a homebasedfood catering business, preparing food for local residents and school canteens. Cateringbusiness is well-structured. Alex works 15 days a month and earns a substantial income from thecatering services business. He is travelling from ABC Engineering workshop to his homebasedbusiness by car or sometimes Uber. When he lodged his tax return in July 2019, he has requested a deduction for a substantial amount of travelling expenses between the ABCEngineering workshop and home-based food business.Alex is now seeking your advice. With reference to relevant legislation and case law discusswhether Alex’s travelling expenses between the ABC Engineering workshop and his homebasedcatering business is an allowable deduction.
Jason owns a small pizza restaurant, where he works full time in the kitchen. His total revenue last year was $136,000, and his rent was $2,610 per month. He pays his one employee $2,200 per month, and the cost of ingredients and overhead averages $960 per month. Jason could earn $32,600 per year as manager of al competing pizza restaurant nearby. What's Jason's accounting profit for the entire year? Your Answer: Answer
Josh and Alex work as design engineers creating high‑end lighting fixtures. After one particularly enlightened afternoon, they decide to follow their dreams and open a cupcake bakery. Please classify their various costs. Supplies like sugar, butter, and baking trays Advertising space taken out on a social networking site The salary Alex earned in his previous job designing light fixtures The garage spaced used for baking that can no longer be rented out to a college student The money they pay their neighbor's six-year old son to deliver cupcakes to their customers Implicit costs Not a cost Explicit costs
We have the results from our first Facebook ad campaign. The following table summarizes the results broken down by age and whether the person seeing the add clicked through. Age 40 or under 85 Age more than 40 65 Total Clicked Through 150 Did Not Click 590 260 850 Total 675 325 1000 For our up(combing) (pun intended) campaign, I want to make it as effective as possible, a cut above all other ad campaigns! I'm thinking that since 85 (or 56.7%) of the 150 people who clicked through to our website are age 40 or less, we should focus our ads to only younger people. I'm not great with number though, and since I know you had a stats class in college, I wanted to get your opinion. Should we focus our adds only to those age 40 and under or should we do something else?
Adam is thinking about going back to university as a full-time student. For the last 5 years, he has been working as an assistant manager at Superstore earning $60,000 per year. However, he has been offered another job with a small company as an assistant manager. If he takes the new position, he will earn $70,000 per year. Adam is already renting an apartment in Calgary for $1,500 per month and his food costs are $700 per month. If he decides to go to university, tuition is going to cost $7,000 per year and his books will cost another $1,500 per year. To finish his university projects, he must buy a new laptop computer (with specialized software) at a cost of $1,500. This is a one- time (first year) expense as the laptop (and software) will last 4 years. If Adam decides to go back to university as a full-time student, what is the cost of doing a 4- year degree? $35,500 $280,000 $275,500 $315,500
Question 8 page 28 Janet spends $20,000 per year on painting supplies and storage space. She recently received two job offers from a famous marketing firm- one offer were for $100,000 per year, and the other was for $90,000. However, she turned both jobs down to continue a painting career. If Janet sells 25 paintings per year at a price of $8,000 each: a. What are her accounting profits? Show your steps leading to your answer b. What are her economic profits? Show your work!
12.
q 10,11,12 please thank you multichoice