Suppose winston's annual salary as an accountant is $60,000, and his financial assets generate $4,000 per year in interest. one day, after deciding to be his own boss, he quits his job and uses his financial assets to establish a consulting business, which he runs out of his home. to run the business, he outlays $8,000 in cash to cover all the costs involved with running the business, and earns revenues of $150,000. what are winston's economic profits
Economic profit is calculated as:
Economic profit = Total Revenues – Total Cost
Total cost both includes explicit and implicit cost. In this case, the explicit cost is $8,000 while the implicit cost is $64,000. Explicit cost is a direct payment made to run the business while implicit cost is the opportunity as accountant that is lost. Therefore,
Economic profit = $150,000 – ($8,000 + $64,000)
Economic profit = $78,000
To get Winston's economic profit, we subtract both his explicit and implicit costs from his revenue, which gives us $78,000.
Explanation:To determine Winston's economic profits we need to first understand the accounting profit and economic profit. Accounting profit is the total revenues minus explicit costs. Economic profit takes into consideration both explicit and implicit costs, which in this case includes Winston's original annual salary.
First, we calculate the accounting profit: Revenues ($150,000) - Explicit costs ($8,000) = $142,000. Then we calculate the economic profit which is the Accounting profit ($142,000) - Implicit costs ($64,000 [$60,000 salary + $4,000 interest]) = $78,000. Therefore, Winston's economic profits are $78,000 under his new consulting business.
Learn more about Economic Profits here:https://brainly.com/question/33205053
#SPJ3
Why did the economies of many african nations fail after they gained independence?
They had limited their trading with colonial nations that controlled them and only to their home countries as well. Another factor is that they were left with no other resources, that the other countries had failed to teach Africa as well, when they were independent, which caused them to have a failure in terms of infrastructure and system.
Your hospital is planning neonatal resuscitation program® training and trying to decide who should be included. for every delivery, what is the minimum requirement for care of the newborn at birth
Answer: The correct answer is : The people included in the training must be present at each delivery and must also be able to care for the baby.
Explanation: The person who is called to attend the newborn is to ask these questions before resuscitation: Is the baby pregnant at the end? Does the baby breathe or cry? Does the baby have a good tone? After performing the resuscitation should be checked: the breaths, the heart rate, to see if the resuscitation was effective.
From the textbook material, when all activities of the value chain are conducted within the boundaries of the firm, the firm is said to be
If a business decreases the price of its product and the product is elastic what happens to the total revenue of the business
• have you ever dealt with company policy you weren't in agreement with? how?
After an ems run, your partner suggests you write down vital signs differently than the ones obtained
During an EMS run and your partner instructed you and suggests you to do and write vital signs written differently than of the original record obtained, it would likely affect the treatment that could be administered in the patient. The vital signs are basic and yet they are important in a person’s data for they are a critical data and it is where medical professionals base their treatment and assessment to the patient. If this is written differently, not only will affect the treatment but it could also cause conflicts and there will be consequences to the people who are involved such as having suspended or fired in their line of work or having to have criminal charges.
Salespeople bringing suggestions for a new fast food item to the headquarters of their food manufacturer is an example of ________
Spending by which sector is the largest single component of spending in the u.s. economy?
If a male and a female who weigh the same consume the same amount of alcohol:
Jeeves consulting requires a performance evaluation method that is less time consuming to develop and administer and allows for quantitative analysis and comparison. an appropriate evaluation technique for jeeves consulting would be
Jeeves consulting needs a performance evaluation method in quantitative analysis and comparison. Because of this, they need a technique evaluation that will be of help of assessing and evaluating a performance. What they should use is the graphic rating scales as it fits the method they need to use as it is a performance appraisal method in a way of having to show quantitative analysis and comparison. It enables to show effective performance and to show rates and differences of what is being compared. It is easier to use for it is less time consuming in the process of administering and developing.
On december 1, victoria company signed a 90-day, 6% note payable, with a face value of $15,000. what amount of interest expense is accrued at december 31 on the note?
Many employment contracts contain a(n) ______________ designed to prevent employees from divulging proprietary information to competitors or opening competing businesses.
Many employment contracts contain non complement clause designed to prevent employees from divulging proprietary information to competitors or opening competing businesses.
What is business?An innovative company or group that engages in professional activities is referred to as a business. They could be industrial, commercial, or something else. Businesses that are for profit operate to make a profit, whereas those that are nonprofit do so to further a philanthropic cause.
Business economics is an area of applied economics that focuses on the problems that businesses have with money, organizations, markets, and the environment.
The study of business economics covers topics including the idea of scarcity, product characteristics, distribution, and consumption.
As part of the company's strategic and operational development, he creates new business concepts. By doing this, he works toward his objectives of boosting sales, gaining market share, and providing clients with new or improved items.
Business is an economic activity that focuses on the creation, trade, and distribution of commodities and services with the goal of generating profit by gratifying the seemingly limitless desires of people.
Learn more about business, here
https://brainly.com/question/15826604
#SPJ5
A joint venture is an example of a strategic alliance.
a. True
b. False
Answer:
yes
Explanation:
What do you call a franchise ownerâs share of earnings that is given as a payment to a parent company?
A measure of how clean or polluted the air in a given region is on a particular day is the
The answer to this question is the air quality index. The Air Quality index or AQI is the way to inform the public how polluted the air by daily reporting the air quality. The air quality index functions mainly to give advisories to the public when the air is unhealthy and gives an update on the ozone levels.
Requirements analysis is a process in which stakeholders identify the features that a project will need and then prioritze them as mandatory, preferred
An office manager orders office supplies. He pays $20 for pens, $15 for paper clips, $30 for paper, and $28 for legal pads. What will this subtotal be, before sales tax? A. $83 B. $93 C. $73 D. $103
What is emerging as a major business area of innovation that offers a flexible collection of computers on the internet that can perform tasks previously performed on corporate computers?
Ich e6 has broader requirements than fda or hhs concerning confidentiality of medical records and access by third parties. if investigators are complying with ich e6 guideline, they must:
If the price of pepsi-cola increases from 50 cents to 60 cents per can and the quantity demanded decreases from 100 cans to 50 cans, then the demand for pepsi-cola is
A sofa is on sale for $187.20, which is 26% of the regular price. what is the regular price?
The u.s. does not avoid trade barriers on imports, despite support of free-trade principles.
If the question ask if this statement is true or false, then the correct answer is “True”.
The US does not impose any restriction on imports. They are adhering to the principle of the free-trade. The free trade is a policy observed by some international markets in which countries' governments do not restrict imports from, or exports to, other countries.
If a customer orders a breakfast sandwich made with an egg white omelet, what type of cheese is used?
The type of cheese commonly used in a breakfast sandwich with an egg white omelet is mozzarella cheese. Options like artichoke hearts or mushrooms might be added for extra flavor, and extra cheese can make it creamier. Adding vegetables is a healthy alternative to extra cheese.
If a customer orders a breakfast sandwich made with an egg white omelet, the type of cheese typically used can vary depending on the restaurant or recipe
However, a common choice is mozzarella cheese due to its mild flavor and meltability.For example, some breakfast sandwiches might include additional options like artichoke hearts or mushrooms to enhance the flavor profile. Additionally, many sandwiches will use extra cheese to add creaminess and a rich texture.It's always a good idea to keep in mind that some customers may prefer adding vegetables such as cucumbers, lettuce, tomato, and onions instead of extra cheese, to make their breakfast sandwich healthier.4. Which of the following browsers is typically built into Windows?
The demand for refrigerators falls when the economy enters a downturn. if a refrigerator manufacturer lays off workers during an economic downturn, this would be an example of
The scenario illustrates cyclical unemployment, which happens when firms lay off workers due to decreased demand during economic downturns. This is linked to the consumption component of aggregate demand in the G&S model. Reduced demand leads to less production and fewer hiring opportunities.
The situation described is an example of cyclical unemployment. This type of unemployment occurs during economic downturns or recessions when there is a decrease in demand for goods and services.
As the economy slows down, demand for products like refrigerators falls, leading manufacturers to reduce production and lay off workers. During these periods, the willingness of firms to hire new labor diminishes as they anticipate lower sales.
In the G&S model (Goods & Services), a household purchase of a refrigerator would represent demand recorded in the consumption component of aggregate demand. When overall demand decreases, firms produce less and subsequently require fewer employees, exemplifying how economic downturns impact employment.
Primary drives are ________. learned unlearned produced by external incentives exceptions to the drive-reduction principle
Which accounting assumption or principle is being violated if a company is a party to major litigation that it may lose and decides not to include the information in the financial statements because it may have a negative impact on the company's stock price?
Serves the needs of citizens is a characteristic of which market structure?
What to put for expected hourly pay rate?