Nick is considering quitting his current job as an electrician and following his lifelong dream of opening a restaurant. This decision requires careful analysis and evaluation. If he chooses to do this, he would have to quit his current job, which pays $70,000 a year, and take over a building that he owns and currently rents out for $12,000 a year. His expenses at the restaurant would be $100,000 for food and $8,000 for gas and electricity. Nick should go ahead and quit current job and implement his plans only if the projected revenue is equal or greater than a $12,000 b $82,000 c $108,000 d $190,000 e $70,000

Q: Remember that Molly has a $2500 down payment saved for this purchase. The dealer will take the $500…

A: The loan is the amount of money which would result in the amount of money borrowed and used for…

Q: Suppose you buy a house for $250,000. One year later, the market price for the house has fallen to…

A: Return on Investment:The return on investment is the benefit gained by the investor from making an…

Q: Rodriguez operates a variety store that provides an annual revenue of $500,000. Each year, he pays…

A: Revenue, also known as a sale, is an increase in equity that results from the sale of a product or…

Q: Elroy Harris is considering whether to buy a corn and soybean farm in Iowa. The farm will cost…

A: Accounting profit is the net income from a business, which is revenue minus explicit costs. Economic…

Q: Nick received a $50,000 bank loan in order to expand and remodel his restaurant. Which of the…

A: Loan refers to the sum of money that a person or firm takes from a bank or from any lender for…

Q: Pigou buys a house for $500,000, rents it for $2,000 per month for four years, and then sells it for…

A: If rent is $2,000 per month, then the rent for four years can be calculated as follows:

Q: You are thinking about becoming a Paradise Coffee franchisee.  Franchisees are offered a business…

A: Implicit cost are also known as opportunity costs which is the forgone income. The explicit cost is…

Q: Sean lives in San Diego and runs a business that sells pianos. In an average year, he receives…

A: Explicit cost- Explicit business costs include all transactions relating to production factors used…

Q: 18. Tony is currently operating a small newsstand. Unsold newspapers will be returned to the…

A: 18) The actions and procedures used by organizations to produce their goods and services are known…

Q: Sean owns a condo that he values at $500, 000. Sean hosts a dinner party, and invites Mo, a friend…

A: The objective of the question is to determine Sean's threat value in the context of selling his…

Q: The difference in monthly payments between the two offers is $

A: A down payment is a sum that a buyer pays upfront when purchasing an item such as a home or car.

Q: Paolo lives in Philadelphia and operates a small company selling scooters. On average, he receives…

A: Explicit cost is the actual monetary cost to run a business.  Implicit cost is the opportunity cost…

Q: Complete the following table by determining Hubert's accounting and economic profit of his boat…

A: Implicit cost refers to the opportunity cost which is involved in doing a business. It is not a…

Q: Harish currently owns an apricot farm which in the past has been highly profitable with revenues of…

A: Accounting profit is the profit calculated by subtracting explicit, out-of-pocket costs and…

Q: Congratulations! You've won the state lottery! The lottery advertised a $20,000,000 grand prize.…

A: The discount rate refers to the interest rate used in discounted cash flow (DCF) analysis to…

Q: Kenji lives in New York City and runs a business that sells guitars. In an average year, he receives…

A: The difference between total sales and total economic costs is known as economic profit. The…

Q: Hi! Can you help me with the question below? Matt has the choice between receiving $100 now or…

A: Matt has the choice between receiving $100 now or receiving $140 in two years. Simple interest…

Q: Sean owns a condo that he values at $500, 000. Sean hosts a dinner party, and invites Mo, a friend…

A: The objective of the question is to determine Sean's threat value in the context of selling his…

Q: Donovan would like to build a game room in his basement but does not want to take a loan. He opens…

A: Future Value  is based on an assumed rate or growth in value of an investment or asset over…

Q: Problem 4 Hiro owns and operates a small business that provides economic consulting services. During…

A: (a) Hiro's accounting profit can be calculated by subtracting his explicit costs from his total…

Q: Suppose you are considering whether to purchase a house off of Lake Erie for $400,000.  You expect…

A: The money that is left over after all costs have been deducted from the entire amount of revenue is…

Q: person wants to invest in property and therefore wants to consider purchasing a $75.000 condominium…

A: We will include the cash necessary for operations, as well as the costs incurred, as well as the…

Q: Bob lives in Toronto and runs a business that sells guitars. In an average year, he receives…

A: Explicit expense is the cash consumption brought about by the entrepreneur on information sources or…

Q: Complete the following table by determining Raphael's accounting and economic profit of his piano…

A: Explicit Costs are the opportunity costs of production that require a monetary payment. Implicit…

Q: Kendall is a successful data analyst working at Amazon. She had one passion for all these years, she…

A: a) Accounting profit: The difference between Total revenues and explicit costs involved. Total…

Q: Sean owns a condo that he values at $500,000. Sean hosts a dinner party, and invites Mo, a friend of…

A: The term O.C. describes the value of the next best alternative forgone when a decision is made. It…

Q: Sarah, Alicia, and Philip all lost their jobs when the technology start-up they worked for was…

A: Concepts: Labor force: Labor force is consist of employed workers as well as unemployed workers who…

Q: Andrew has decided to open an online store that sells home and garden products. After searching…

A: Investment refers to the act of allocating resources, such as money, time, or effort, with the…

Q: Eduardo, a teacher, earned $40,000 as his annual salary from his employer in 2018. But in 2019 he…

A: Accounting profit  is measure of profit of a firm which takes explicit costs into account.While…

Q: A construction manager just starting in private practice needs a van to carry crew and equipment.…

A: The manager can lease a used van for $3,777 per year. and this lease amount is paid at the beginning…

Q: After graduation, you face a choice. You can work for a multinational consulting firm and earn a…

A: Write the formula to calculate accounting profit as follows: Accounting profit = revenue - explicit…

Q: Yogajothi is thinking of investing in a rental house. The total cost to purchase the house,…

A: The rate of interest is 6% compounded monthly. Thus,  Firstly, calculate the effective interest…