Kate quit her job, where she earned $120,000 per year, to start her own financial consulting firm. She invested $80,000 of her own funds in furniture, computers, and other assets. During the first year of operation, the firm’s costs were $70,000 for rent on the office building, $420,000 for wages and salaries of employees, and $11,000 for supplies and utilities. The market value of the firm’s assets at the end of the year was $60,000. During the year, the firm billed its clients for 2,700 hours at $240 per hour. The typical rate of return on financial investments in the economy was 8%. ics - Summer 2023 Join: 243499Gradebook.1: What Is Economic Profit?Homework Due in 7 daysPMFill in the BlanksType your answers in all of the blanks and submitX, X'Ω·In the scenario above, Kate's economic (profit/loss)17400You are incorrectXAnswered-Incorrect 2 attempts left16/20 answeredQuestion 19•Homework Answered Due Jul 11th, 11:59PM147000Answered-Incorrect 2 attempts leftIn the scenario above, Kate's normal profit would be $__________.Type your numeric answer and submitQuestion 20Homework Unanswered Due Jul 11th, 11:59PMFill in the BlanksType your answers in all of the blanks and submitX, X' 22-profitYou are correct✓Write your response would be $ Type your answer herehere...was $If Kate earned $125,000 per year at her previous job, her firm's economic (profit/loss)ResubmitXYou are incorrectResubmitO

Economic profit is a metric used to assess a company's overall financial performance after deducting…

Answered: Kate quit her job, where she earned…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Kate quit her job, where she earned $120,000 per year, to start her own financial consulting firm. She invested $80,000 of her own funds in furniture, computers, and other assets. During the first year of operation, the firm’s costs were $70,000 for rent on the office building, $420,000 for wages and salaries of employees, and $11,000 for supplies and utilities. The market value of the firm’s assets at the end of the year was $60,000. During the year, the firm billed its clients for 2,700 hours at $240 per hour. The typical rate of return on financial investments in the economy was 8%.

ics - Summer 2023 Join: 243499
Gradebook
.1: What Is Economic Profit?
Homework Due in 7 days
PM
Fill in the Blanks
Type your answers in all of the blanks and submit
X, X'
Ω·
In the scenario above, Kate's economic (profit/loss)
17400
You are incorrect
X
Answered-Incorrect 2 attempts left
16/20 answered
Question 19
•
Homework Answered Due Jul 11th, 11:59
PM
147000
Answered-Incorrect 2 attempts left
In the scenario above, Kate's normal profit would be $__________.
Type your numeric answer and submit
Question 20
Homework Unanswered Due Jul 11th, 11:59
PM
Fill in the Blanks
Type your answers in all of the blanks and submit
X, X' 22-
profit
You are correct
✓
Write your response would be $ Type your answer here
here...
was $
If Kate earned $125,000 per year at her previous job, her firm's economic (profit/loss)
Resubmit
X
You are incorrect
Resubmit
O

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