Jill took $50,000 that she had in savings and started her own business. If left in investments, she would have earned $5,000 this year. Jill also left a job that paid her $70,000 a year and plans on paying herself $40,000. Materials and other labor costs will be $80,000. The company is located in a building that Jill owns. She has an nsurance and mortgage payment of $20,000. She could have rented the building out for $40,000. What are the accounting and economic costs? The accounting cost is $ and the economic cost is $

Jill took $50,000 that she had in savings and started her own business. If left in investments, she would have earned $5,000 this year. Jill also left a job that paid her $70,000 a year and plans on paying herself $40,000. Materials and other labor costs will be $80,000. The company is located in a building that Jill owns. She has an nsurance and mortgage payment of $20,000. She could have rented the building out for $40,000. What are the accounting and economic costs? The accounting cost is $ and the economic cost is $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Eduardo, a teacher, earned $40,000 as his annual salary from his employer in 2018. But in 2019 he decided to quit that job and start his own business: manufacturing skateboards. Here's what he did to accomplish it: Stopped renting out his grandparents' cottage (for $8,000 a year) and used it as his factory instead. .He spent $60,000 on materials and utility bills. He got that money from his savings account, which was earning 5% annual interest. • He leased machines for $10,000 a year and paid $15,000 in wages. He sold $135,000 worth of skateboards. Eduardo's accounting profit is but his economic profit is O160,000; 85,000 141,000; 160,000 O-1000; 50,000 50,000; -1000
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Please see attachment and type out the correct answer ASAP with proper explanation . Thank you . A company is considering investing in a new machine that makes the production process more efficient. The machine costs $15,000 and will lower the variable unit costs by $2. The goal of the investment is to increase production, allowing the company to benefit from the experience curve and selling the product $3 cheaper than the current price of $38. What is the percentage change in the number of units sold if the company wants to maintain its profitability? Assume it is currently producing 10,000 units of the product and has a current contribution of $10 per unit sold.
After graduation, you face a choice. You can work for a multinational consulting firm and earn a starting salary (including benefits) of $40,000, or you can start your own consulting firm using $5,000 of your own savings. If you keep your money in a savings account, you can earn an interest rate of 7 percent. You choose to start your own consulting firm. At the end of the first year, you add up all of your expenses and revenues. Your expenses include $14,000 for rent, $1,000 for office supplies, $24,000 for labor, and $4,500 for telephone expenses. After operating your consulting firm for a year, your total revenues are $88,000. Instructions: Enter your answers as a whole number. a. What is your accounting profit? 2$ b. What is your economic profit? 2$
Higher interest rates are likely to Group of answer choices decrease consumer spending and increase consumer saving. have no effect on consumer spending or saving. increase consumer spending and decrease consumer saving. decrease both consumer spending and consumer saving.
You have 2 accounts: Account A has a $700 balance and a $1000 credit limit. Account B has a $150 balance and a $500 credit limit. What are your debt-to-credit ratio? Enter your number as a percent and round to 1 decimal place
Someone’s uncle leaves them $10,000 in his will, but with a requirement that they invest the money into retirement savings. Their brother suggests a Roth IRA, but their sister suggests a Traditional IRA. Explain which one they should choose.
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Dana was dating Wade, a wealthy real estate entrepreneur. Wade was much older than Dana and knew he needed to offer something “special” to make her stay. Wade told Dana that if she continued dating him, he would pay her $10,000 a month. Wade paid Dana for two years when suddenly, for no apparent reason, he stopped the monthly payments. Dana stayed with Wade for another six months, but decided enough was enough and left. She wanted the $60,000 she was owed for the six months; Wade refused to pay her. Is Dana entitled to the $60,000?
Mary's job position is being transferred to Lexington Kentucky from Orlando Florida. She and her husband George are currently running their home in Orlando but they have decided they want to purchase a home in Lexington. Mary's annual salary is $48,500. George has been able to find employment in Lexington at a factory making $39,000 per year. Mary is a planner and has saved $6,200 that she can use towards the down payment on the new house. To save the down payment Mary deposited in a savings account monthly earning 2.5 compounded monthly. If it took Mary 5 years to save up the down payment how much money was mary depositing each month
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