Suppose that a small hair styling salon had revenues of $200,000 in a given year. The owner spent $15,000 on utilities, $72,000 on supplies (shampoo, conditioner, hair coloring and other chemicals, etc.), and $60,000 on equipment (mirrors, chairs, scissors, curling irons, etc.), including maintenance. The owner could have earned $70,000 working at another salon. A) What is the accounting profit

Q: Joe is the owner-operator of Joe's Haircuts Unlimited. Last year he earned $175,000 in total…

A: Accounting profit refers to the net  profit which is earned by individual or firm in a period of…

Q: Your uncle is thinking about opening a wine bar. He estimates that it would cost $400000 per year to…

A: Total cost = 400000 $ Accounting profit  = TR – TC = 600000  - 400000 = 200000 $ Economic profit =…

Q: Jaime owns and manages a café in Collegetown whose annual revenue is $5,000. Annual expenses are as…

A: A . $750 B. Explanation: the questions about Jaime's cafe.a. Calculate Jaime's annual accounting…

Q: Describe the four steps taken to obtain a unit profit?

A: Profit: Profit is the portion of total revenue that remains after deducting the total cost. Below is…

Q: 7. Suppose a Professor leaves his job at a university to open his own consulting firm. As a…

A: According to the given information,  Implicit cost for Professor is $80,000 Explicit cost for…

Q: QUESTION 13 Table 13-11 Teacher's Helper is a small company that has a subcontract to produce…

A: Teacher's Helper is a company dedicated to creating high-quality instructional materials for…

Q: Michael runs a small pottery firm. He hires one helper at $14,000 per year, pays annual rent of…

A: Total revenue is the product of price and quantity. Monetary expenses are the explicit cost.…

Q: Eustace H. Hogan has been an employee of Major Drilling for the last two years. He uses an office in…

A: Employment Income is defined as the income which consists of wages, salary, allowances, pension,…

Q: Jane is reviewing the accounting book of a firm. One page of it is damaged and Jane cannot see the…

A: Total cost is the sum of variable cost and fixed cost.

Q: 38) Dr. Khan starts his own dental practice after quitting his $150,000 job at The Mall Dental…

A: here we can find the correct option as follow

Q: Stark Industries' accounting profit for the year ended 31 December 2012 amounted to $3,130 million.…

A: Economic profit refers to the surplus value that a producer earns in addition to the normal level of…

Q: A man managing a restaurant for $20,000 per year decides to open his own diner. His revenue during…

A: Every business has two types of cost, implicit and explicit

Q: Max earns a yearly salary of $120,000 per year from his job and $1,000 per year in interest on his…

A: Max's salary from job = $120,000 per yearInterest on savings = $1000If he starts a company, then…

Q: The table below presents production data for a particular firm. 1) Use formulas/calculation in excel…

A: Total Fixed Cost = Total Cost - Total Varible Cost Total Fixed Cost = Total Cost - Total Varible…

Q: Refer to the cost table below and answer two questions about profit. Instructions: If you are…

A: The profit is the difference between the total revenue and total cost. In the perfectly competitive…

Q: As a manager which do you think should you consider accounting profits or economic profits? why?

A: Cost of production is the monetary value incurred in the process of production on factors used in…

Q: Quantity 1 2 3 4 5 Price $20 $19 $18 $17 $16 Total Revenue $20 $38 $54 $68 $80 Marginal Revenue…

A: Marginal revenue measures the change in total revenue due to a change in quantity. i.e., Marginal…

Q: 3. Profit maximization using total cost and total revenue curves Suppose Amari operates a handicraft…

A: Marginal revenue refers to the additional revenue gained by the producer by selling one additional…

Q: Although Goldman Sachs paid Heather $100,000.00 per year, she was not satisfied with her job. She…

A: Given:- Amount Heather get from her job= $100000 per yearAmount she borrowed from bank=…

Q: Page 1 of 1 Answer each of the following questions and don't forget to indicate the sign (positive…

A: Economic profit is the money left over after all direct and indirect expenses have been paid.…

Q: Explain the difference between accounting and economic profit. Give two examples of when they…

A: Accounting profit means that profit which is earned after the explicit costs are deducted from…

Q: Our firm’s accountants have put together the following table of costs.   Generators Solar Panels…

A: Generators business: Fixed cost=$2 million Variable cost=$2 million Revenue=$3 million Solar panels:…

Q: QUESTION 4 Suppose a department store has two major departments: furniture and clothing. Due to…

A: Explicit cost is the cost which is actually incurred by the firm, during production. The firm adds…

Q: Jason owns a small pizza restaurant, where he works full time in the kitchen. His total revenue last…

A: Explicit costs is the monetary expenses on raw material , wages , etc  Implicit costs are the…

Q: Consider the concepts of accounting profit and economic profit.  Suppose you are a consultant and…

A: Profit is the surplus value that is generated in a process of production, which usually accrues to…

Q: endy decides to open her own business and earns 70,000 in accounting profit the first year. When…

A: The measure that depicts expenses that are incurred by a business for carrying out its day-to-day…

Q: What would change if you found a new niche market to sell your product and your sales jumped to…

A: To analyze the situation, we'll calculate the accounting profit and economic profit and consider…

Q: 1.5) You use RM50,000 of your own money to start an espresso stand. During the first year you earn a…

A: Given: Amount = 50,000

Q: 11. Madibaz is a company that produces t-shirts. The firm operates in a highly competitive, industry…

A: here we calculate the Madlibaz total profit by using the given information which are as follow-

Q: The difference between accounting profit and economic profit is that accounting profit is the…

A: An explicit cost is the clearly stated costs that a business incurs. For example, employee wages,…

Q: mark Merchant owns and manages a café at food court. His monthly figures are: Revenue: $5,000…

A: Profit is the major motive of all the firms operating in a market. Profit is the difference between…

Q: You plan to open your own hamburger shop. After doing some research and planning, you have created…

A: Fixed cost is independent of output produced.  Marginal cost is the additional cost incurred in…

Q: Your uncle is thinking about to open a fish & chips restaurant. He estimated that it would cost…

A: In economics, explicit cost is the direct cost of choosing an alternative and make expenditure on…

Q: Fill in the remaining cells of the table. (Note: If a value is a decimal, round to the nearest…

A: MC = Change in TC / Change in Q AFC = TFC / Q AVC = TVC / Q ATC = TC / Q Q TFC TVC TC MC AFC AVC…

Q: 12 Precast Pools, Inc. sells their product for $3,000 each. At a volume of 20 units, their labor,…

A:

Q: Q8. For an X-ray lab, the fixed cost of equipment is 27,000,000 for the x-ray machine. The cost of a…

A: Cost of single X-ray=PKR 500 To find variable costs, we will multiply the cost of single output  and…

Q: The following graph shows the total costs of a company that sells its product for $12.5/pc. Graphic…

A: The income of the firm comes from selling their product. It is calculated by multiplying the price…

Q: Suhail decided to leave his job that paid him a salary of OMR 35,000 to start a Café. For this…

A: Total revenue (TR) is the total receipts collected from the sale of goods or services in the market.…

Q: However, Charles's decision regarding how many workers to use can vary from week to week because his…

A: Given information: Charles's Performance Pizza is a small restaurant in San Diego that sells…

Q: Our firm produces two products: generators and solar panels. Name five economies of scale you would…

A: Economies of scale allude to the cost advantages an organization gains with the increase in…

Q: Dr. Khan starts his own dental practice after quitting his $150,000 job at The Mall Dental Clinic.…

A: Accounting Profit=Total Revenue-Explicit costs.