Economics

2. Lucy quits a $50,000 job to open her waffle business. She makes $225,000 in revenue from her first year of waffle sales. She pulls $50,000 out of an account that returns 3% interest per year and invests the entire amount in her business. She also borrows $50,000 at 10% interest rate to invest in her business. After these initial investments, she also spends $10,000 on inputs and $50,000 on worker salaries.
Find total revenue, accounting cost, economic cost, implicit cost, explicit cost, economic profit, accounting profit.

asked by Carol

Respond to this Question

First Name

Your Response

Similar Questions

  1. Economics

    I got a lot of problems with this exercise. I really hope you can help me. Thanks! Samantha Roberts has a job as a pharmacist earning $30.000 per year, and she is deciding whether to take another job as the manager of another
  2. Economics

    Professor Martin is considering leaving the university and opening a consultant business. His services as a consultant he would be paid $75,000 a year. To open the business professor Martin must convert a house from which he
  3. economics

    Samantha Roberts has a job as a pharmacist earning $30,000 per year, and she is deciding whether to take another job as the manager of another pharmacy for $40,000 per year or to purchase a pharmacy that generates a revenue of
  4. economics

    Samantha Roberts has a job as a pharmacist earning $30,000 per year, and she is deciding whether to take another job as the manager of another pharmacy for $40,000 per year or to purchase a pharmacy that generates a revenue of
  5. economics

    Samantha Jones has a job as a pharmacist earning $30,000 per year, and she is deciding whether to take another job as the manager of another pharmacy for $40,000 per year or to purchase a pharmacy that generates revenue of
  6. economics

    Suppose a persona quits a job paying $40,000 per year and starts a business with $100,000 withdrawn from a money-market account earning 8 percent per year. The implicit cost of the business is ____ for the entrepreneurs time plus
  7. Economics

    Jim left his previous job as a sales manager and started his own sales consulting business. He previously earned $70,000 per year, but he now pays himself $25,000 per year while he is building the new business. What is the
  8. finance

    I need help bad. You have been running your small business, Craft’s Boat Shop, for several years now and have been very successful.  You have come to the point where you expect sales to increase next year and want to be sure
  9. accounting

    Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. Halifax only makes credit sales. The company began 2013 with an allowance for
  10. BUSN

    4. For this question, use the information for Sports Baseballs, Inc. Sports Baseballs, Inc. is a corporation that manufacturers and sells baseballs across several states in the Southeast. It had sales of $2.7 million during the

More Similar Questions