Please answer sections a-d. Section D is typed here while A-C are attached. D)What does the economic profit value tell us, and what advice would you give Jarod about his business? a. Jarod's explicit costs total $His implicit costs total $b. What is Jarod's annual accounting profit? $c. What is Jarod's annual economic profit?%24 Last year, Jarod left a job that pays $80,000 to run his own bike repair shop. Jarod's shop charges $65 for a repair, and last year theshop performed 5,000 repairs. Jarod's production costs for the year included rent, wages, and equipment. Jarod spent $60,000 onrent and $100,000 on wages for his employees. Jarod keeps whatever profit the shop earns but does not pay himself an official wage.Jarod has invested $30,000 of his savings in the business. His savings were earning an annual interest rate of 4 percent.

a. Explicit Cost : Rent - $60,000 Wages - $100,000 Total Explicit Cost = $160,000…

Answered: Please answer sections a-d. Section D…

Please answer sections a-d. Section D is typed here while A-C are attached. D)What does the economic profit value tell us, and what advice would you give Jarod about his busin

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Please answer sections a-d. Section D is typed here while A-C are attached.

D)What does the economic profit value tell us, and what advice would you give Jarod about his business?

a. Jarod's explicit costs total $
His implicit costs total $
b. What is Jarod's annual accounting profit? $
c. What is Jarod's annual economic profit?
%24

Last year, Jarod left a job that pays $80,000 to run his own bike repair shop. Jarod's shop charges $65 for a repair, and last year the
shop performed 5,000 repairs. Jarod's production costs for the year included rent, wages, and equipment. Jarod spent $60,000 on
rent and $100,000 on wages for his employees. Jarod keeps whatever profit the shop earns but does not pay himself an official wage.
Jarod has invested $30,000 of his savings in the business. His savings were earning an annual interest rate of 4 percent.

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