ophia has decided to start her own business. In doing so she refused an offer to work at the Central Bank which would pay a salary of $200,000 annually. Last year she earned a total revenue of $150,000. Rent and utilities last year were $60,000. Her assistantʹs salary is $50,000 annually. Her total explicit and implicit costs are

ophia has decided to start her own business. In doing so she refused an offer to work at the Central Bank which would pay a salary of $200,000 annually. Last year she earned a total revenue of $150,000. Rent and utilities last year were $60,000. Her assistantʹs salary is $50,000 annually. Her total explicit and implicit costs are

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter4: Extent (how Much) Decisions

Section: Chapter Questions

Problem 4.6IP

See similar textbooks

Similar questions

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)
Dexter set up a computer repair business out of his home office. Based on the square footage of his office, he allocates a fixed cost of $400 per month in mortgage expenses. He also has a monthly internet bill of $45 and a monthly phone bill of $35. While repairs vary greatly, Dexter estimates an average of $19 in expenses per repair and charges a flat $49 fee per repair for his labor. 3a. How many computers does Dexter need to repair each month to break even?__________3b. What is Dexter’s profit / loss if he only repairs 8 computers in a month?__________3c. What fee would Dexter need to charge to break even at 8 repairs?
I want the answer
help
Assume you are selling pizzas at $3 per pizza Your fixed costs (rent, salaries, and utilities) are $3,633/month. The food costs and other variable costs are 50 percent of the selling price. What is your break-even point in units sold? (enter only the value)
Megan used to work at the local pizzeria for $17,000 per year but quit in order to start her own deli. Last year, she paid $4,000 rent each month, $4,500 for employee payroll each month, and $1,500 for supplies each month. She was planning on selling $2,500 worth of furniture but ended up bringing the furniture to her new deli. She had total revenue of $150,000. She asked an accountant and an economist to calculate her annual costs. Accountant says cost is $120,000, and economist says her cost is $139,500. Accountant says cost is $139,500, and economist says her cost is $120,000. Accountant says cost is $10,000, and economist says her cost is $29,500. Accountant says cost is $30,000, and economist says her cost is $10,500.
Consider the following example: Jordan currently works for a corporate law firm. She is considering opening her own independent legal practice, where she expects to earn $300,000 per year once she gets established. To run her own firm, she willI have to give up her current job with a salary of $165,000 and will incur the following annual expenses: Rent 22,490 Salary-Legal Assistant Computer Software License Office Supplies 21,830 120 800 Internet Subscription 1,750 How much are Jordan's explicit costs? Number How much is Jordan's accounting profit? Number How much are Jordan's implicit costs? Number How much is Jordan's economic profit? Number Assume Jordan values her leisure time at $80/hour, and starting her own firm would require her to put in 15 more hours than at the corporate firm: What is the change in Jordan's explicit costs? Number What is the change in Jordan's implicit costs? Number
You run a school in Florida. Fixed monthly cost is $5,837.00 for rent and utilities, $6,127.00 is spent in salaries and $1,459.00 in insurance. Also every student adds up to $103.00 per month in stationary, food etc. You charge $684.00 per month from every student now. You are considering moving the school to another neighborhood where the rent and utilities will increase to $10,946.00, salaries to $6,128.00 and insurance to $2,040.00 per month. Variable cost per student will increase up to $166.00 per month. However you can charge $1,042.00 per student. How much do you currently charge per student? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Sandra lives in Melbourne and runs a business that sells guitars. In an average year, she receives $2.6 millionfrom sales of guitars. Of this sales revenue, she must pay the manufacturer a wholesale cost of $1,400,000. She also pays wages and utility bills totalling $1,100,000. If she does not operate this guitar business, she can work in an accounting firm and receive an annual salary of $70,000. She owns her showroom. If she chooses to rent it out, she will receive $50,000 in rent per year. Assume that the value of this showroom does not depreciate during the year. No other costs are incurred in running this guitar business. What is Sandra’s accounting profit (used for tax purposes)? What is her economic profit?
Don Juan Perez runs a seafood restaurant on the central coast. His total income last year was $150,000. The rent was $48,000 per year. His labour costs were $42,000 and materials, food and other variable costs were $20,000. Don Juan Perez was going to work as a cookbook writer where he would have earned $40,000 per year, or as a chef de cuisine in another restaurant, where he would have earned $35,000. The economic utility of Don Juan Perez is: Note: the answer is 0 (zero). Please clarify with calculations why this is the correct alternative.
You run a school in Florida. Fixed monthly cost is $5,998.00 for rent and utilities, $6,363.00 is spent in salaries and $ 1,412.00 in insurance. Also every student adds up to $104.00 per month in stationary, food etc. You charge $695.00 per month from every student now. You are considering moving the school to another neighborhood where the rent and utilities will increase to $11,061.00, salaries to $6,801.00 and insurance to $2,112.00 per month. Variable cost per student will increase up to $190.00 per month. However you can charge $1,072.00 per student. At what point will you be indifferent between your current mode of operation and the new option? Submit Answer format: Number: Round to: 0 decimal places.
Chelsea Menken, of Providence, Rhode Island, recently graduated with a degree in food science and now works for a major consumer foods company earning $70,000 per year with about $54,000 in take-home pay. She rents an apartment for $1,200 per month. While in school, she accumulated about $38,000 in student loan debt on which she pays $385 per month. During her last fall semester in school, she had an internship in a city about 100 miles from her campus. She used her credit card for her extra expenses and has a current debt on the account of $7,000. She has been making the minimum payments on the account of about $240 a month. She has assets of $14,000. D a. Calculate Chelsea's debt payments-to-disposable income ratio. Round your answer to two decimal places. b. Calculate Chelsea's debt-to-income ratio. Round your answer to two decimal places. c. Comment on Chelsea's debt situation and her use of student loans and credit cards while in college.