Look at the Data Below then answer/calculate the totals in the questions that follow. (Show Workings) Entrepreneur's potential earnings as a salaried worker = $50,000 Annual lease on building = $22,000 Annual revenue from operations = $380,000 Payments to workers = $120,000 Utilities (electricity, water, disposal) costs = $8,000 Entrepreneur's potential economic profit from the next best entrepreneurial activity = $80,000 Entrepreneur's forgone interest on personal funds used to finance the business = $6,000 Answer these questions directly: a) Creamy Crisp's explicit costs are: b) Creamy Crisp's implicit costs (total) are : c) Creamy Crisp's total economic costs (explicit + implicit costs) are: d) Creamy Crisp's accounting profit is: e) Creamy Crisp's economic profit is: f) If Creamy Crisp's revenue fell to $286,000, what is the new accounting profit and the new economic profits?
Look at the Data Below then answer/calculate the totals in the questions that follow. (Show Workings)
Entrepreneur's potential earnings as a salaried worker = $50,000
Annual lease on building = $22,000
Annual revenue from operations = $380,000
Payments to workers = $120,000
Utilities (electricity, water, disposal) costs = $8,000
Entrepreneur's potential economic profit from the next best entrepreneurial activity = $80,000
Entrepreneur's forgone interest on personal funds used to finance the business = $6,000
Answer these questions directly:
a) Creamy Crisp's explicit costs are:
b) Creamy Crisp's implicit costs (total) are :
c) Creamy Crisp's total economic costs (explicit + implicit costs) are:
d) Creamy Crisp's accounting profit is:
e) Creamy Crisp's economic profit is:
f) If Creamy Crisp's revenue fell to $286,000, what is the new accounting profit and the new economic profits?
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