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

Answers

Answer 1

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

Answer 2
Final answer:

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.

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Related Questions

The cartesian coordinate system is also referred to as a(n) _____________ coordinate system.

Answers

Final answer:

The Cartesian coordinate system is also known as the rectangular coordinate system. It uses perpendicular axes to indicate positions in two or three dimensions and is named after René Descartes. It contrasts with spherical and cylindrical coordinate systems which are used for special types of movements or shapes.

Explanation:

The Cartesian coordinate system is also referred to as a(n) rectangular coordinate system. This system, named after the French mathematician and philosopher René Descartes, is one of the most fundamental concepts in mathematics, particularly in geometry and algebra. It provides a way to describe the position of points on a plane using two axes that are perpendicular to each other.

A Cartesian coordinate system is comprised of two (in two dimensions) or three (in three dimensions) mutual perpendicular axes, which intersect at the origin (0,0) or (0,0,0) for 3D. The coordinates of a point in this system are given as pairs (x,y) in two dimensions or triplets (x,y,z) in three dimensions. The x and y axes lie in the plane, with the x-axis running horizontally and the y-axis running vertically. If a third axis is used, the z-axis, it runs perpendicular to both the x and y axes, creating a three-dimensional space.

What is the portion of a computerâs primary storage that does not lose its contents when one switches off the power?

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the portion of the computers primary storage that does not lose its contents is the random access memory or RAM for short


Your client wants to increase the number of people visiting his website. when analyzing the data for search campaign, which metric do you most want to improve?

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 when analyzing the data for search campaign, the metric do you most want to improve would be: Clickthrough rate (CTR)
Clickthrough rate (CTR) measures the amount of people that click into your advertising banners after it appears on the screen. For today's industry standard, a CTR more than 2% is still considered a successful advertising.

A typical child at 24 months weighs about _____ pounds.

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[tex]I \\ say \\ about \\ approximately \\ 28 \\ [/tex]
Final answer:

A typical 24-month-old child generally weighs about 26 to 28 pounds. This can vary depending on individual growth rates and factors like diet and genetics. Regular checks with a pediatrician can ensure healthy development.

Explanation:

A typical child at the age of 24 months, or two years, usually weighs about 26 to 28 pounds. However, this number can vary as each child grows at their own pace and it depends on factors like diet, genetics, and overall health. It's essential to remember that a healthy weight can look different for each child even of the same age. A pediatrician or healthcare provider should monitor your child's growth chart to ensure they are developing properly.

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A debtor and a creditor have negotiated new terms on a note. how can you determine whether the restructuring is a troubled debt restructure?

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If the present value of the restructured flows using the original interest rate is less than the book value of the debt at the date of the restructure.

Debt restructuring is a procedure that permits a private or open organization, or a sovereign substance confronting income issues and money related trouble to lessen and renegotiate its reprobate obligations to enhance or reestablish liquidity with the goal that it can proceed with its operations.

A TDR or troubled debt restructuring is a debt restructuring in which a creditor, for financial or legal reasons connected to a debtor's financial difficulties, grants a concession to the debtor that it would not otherwise consider. You will know it by if the present value of the restructured flows using the original interest rate is less than the book value of the debt at the date of the restructure.

Organizations specialize in finding bits of information and using them to make inferences about what people like to buy or do or even be is called

Answers

DATA MINING. Data mining involves using existing information about behavior in a way that takes many small snapshots of a person's decision-making and aggregates it into a larger model from which behavior can be predicted.

What are departments called that resemble separate businesses in that they produce and market their own products?

Answers

The departments called that resemble separate businesses in that they produce and market their own products are the Divisions. Furthermore, the head of each division may be a corporate vice president or if the organization is large enough, it is a divisional president.

Shale oil mining corporation is a us employer shale oil and other us employers must perform 1-9 verifications for

Answers

Shale oil mining corporation is a us employer shale oil and other us employers must perform 1-9 verifications for new hires who work under the employer's direct supervision including contractors and day workers.
1-9 verifications is required for all employee from another country to work in united states. This verification is required by homeland security in order to control the background check

What piece of legislation allows computer records documenting criminal activity to be used in court? answer?

Answers

The piece of legislation that allows computer records documenting criminal activity to be used in court is the Federal Rules of Evidence. This legislation allows the government to seek for computer records to be used as evidence for a crime. This is very common for cyber crimes.

Answer:

Federal Rules of Evidence 803(6) is the piece of legislation allows computer records documenting criminal activity to be used in court.

Explanation:

Following the Federal Rules of Evidence 803(6), we will have:

Records of a Regularly Conducted Activity. A record of an act, event, condition, opinion, or diagnosis if:

(A) the record was made at or near the time by — or from information transmitted by — someone with knowledge;

(B) the record was kept in the course of a regularly conducted activity of a business, organization, occupation, or calling, whether or not for profit;

(C) making the record was a regular practice of that activity;

(D) all these conditions are shown by the testimony of the custodian or another qualified witness, or by a certification that complies with Rule 902(11) or (12) or with a statute permitting certification; and

(E) neither the opponent does not show that the source of information nor or the method or circumstances of preparation indicate a lack of trustworthiness.

For​ 1993-1994, the average cost of tuition and fees at public​ four-year universities was ​$2341 for​ full-time in-state students. twenty years​ later, it had increased 330​%. to the nearest​ dollar, what was the approximate cost for​ 2013-2014?

Answers

Final answer:

The approximate cost of tuition and fees at public four-year universities for 2013-2014, after a 330% increase from the 1993-1994 cost of $2,341, was $10,066.

Explanation:

To calculate the approximate cost of tuition and fees at public four-year universities for the 2013-2014 academic year, given the average cost in 1993-1994 was $2,341 and it had increased by 330% twenty years later, we use the following mathematical operation:

Tuition in 2013-2014 = Tuition in 1993-1994 + (Tuition in 1993-1994 × Increase Percentage)

Tuition in 2013-2014 = $2,341 + ($2,341 × 330%)

Tuition in 2013-2014 = $2,341 + ($2,341 × 3.30)

Tuition in 2013-2014 = $2,341 + $7,725.30

Tuition in 2013-2014 = $10,066.30

To the nearest dollar, the approximate cost for the 2013-2014 academic year was $10,066.

Different budgeting periods and explain each one

Answers

Budgeting period is an allocation of time to plan for your money and how or where it's gonna be used. There are two types of budgeting period: Short term and Long term.

Short-term Budgeting period

This budgeting period covers from 6 months to a year, depending on the nature of the business. For seasonal businesses, it should cover at least one seasonal cycle. For wholesale and retail businesses, 6 month is enough.

Long-term Budgeting Period

This covers more than a year of operating. It focuses on the futuristic performance of a business or company. Factors used are market trends, economic growth, inflation rates and industrial production. These factors help foresee profit or problems that may arise. Consequently, this will also help you in your present decisions.

The step of making a tentative plan in the troop-leading procedure usually has six steps. what is step six?

Answers

Step six is to complete the plan.

The basic six steps are:
- receiving the requirements
- issuing a warning order
- making the tentative plan
- initiating the movement
- conducting the reconnaissance, and finally
- completing the plan

It is also advisable to follow the 6 steps by two additional steps which are:
- issuing the complete order
- supervision
Final answer:

The sixth step in the troop-leading procedure correlates to 'Communicate process and results' in the design process, ensuring that the plan and its details are clearly articulated to all parties involved for effective implementation.

Explanation:The Last Step in the Design Process

The sixth step in the troop-leading procedure, often paralleled to the design process, can be thought of as Communicate process and results. This is based on the context provided, where different steps of a design or planning process are laid out. In such a process, this final step is crucial as it involves conveying the developed plan, its underlying strategies, and expected outcomes to all relevant stakeholders. This ensures that everyone involved is on the same page and knows what needs to be accomplished, contributing to the overall effectiveness and execution of the plan. In a military context, which echoes the troop-leading process, clear communication is vital for the successful implementation of operations.

Within a broader context, such as in business or engineering, this last step aligns with ensuring that the design or proposal is comprehensible and actionable. It also opens the door for feedback, which can be used for future refinement and improvement.

An accountant with a college degree and a license from the state accounting board works for the department of defense as a senior auditor. he makes about $100,000 a year and will soon retire with benefits and a pension. what class would you expect him to belong to

Answers

The accountant belongs to the UPPER MIDDLE CLASS. Upper middle class are typically made up of well educated professionals with college degrees and comfortable incomes. Social class are usually defined by means of education, occupation and income. 

Which of the following is a suggested practice to engage families in two-way communication?

A. Journal B. Advocacy events C. Take-home backpacks D. Weekly newsletters

Answers

I believe that take-home backpacks is a good way to engage parents and children in two- way communication. The parent will go through the back pack and see the information that the school has sent home. Then in the evening or at dinner the parent and child can discuss the information that the school has sent home. The parent can show the information to the child and the child can explain. Hopefully this can not place the child on the defensive

Building equity in a home is a good thing because

Answers

Equity in a home increases a homeowners assets

equity in a home increases the homeowners net worth

Which mineral in excess is the number one cause of fatal accidental poisonings of u.s. children under three years old?

Answers

The mineral is IRON. Iron poisoning is the most common type of mineral poisoning in children in United States of America. Research reported that about 20,000 children experience accidental iron poisoning in America every year and most of these cases result in death.

Explain how firms production functions and costs curves will change as science and techno,ogy advance and as the knowledge of how to organize and manage resurces improves

Answers

Firm production functions and cost curve will change based on the available technology and the demands that the market would want to have. Because this is the basis for financial source and goal of the business, it can highly give impact, thus the business should be more flexible to adapt and compete at the same time. Overall the system and financial changes would also adapt with the effect of market acceptance.

When workers go out on a strike not approved by the union, the strike is called a?

Answers

Wildcat strike is where workers just strike without telling the union or getting approval

Traditional advertisements for cookware have always focused on appealing to women consumers. such advertisements make use of consumer differences arising out of microcultures based on different _____.

Answers

 such advertisements make use of consumer differences arising out of micro cultures based on different Sex Roles.
Another example of this would be the advertisements of Guns that is aimed to be appealing to Men because the 'sex roles' as the protector seems to be had by Men

An exclusive control like in a business A. Bureaucracy B. Balance and Trade C. Monopoly D. Checks and Balances

Answers

Monopoly. This means that you have control of all goods in one industry, or a great majority.

monopoly because you are playing with many things such as businesses and property  

What is the maximum legal speed when the operator's view is obstructed or safe operation is impaired because of people or gear on board the vessel?

Answers

The maximum legal speed in this case is PLANE SPEED. A vessel is operating at a plane speed when its weight is predominate supported by hydrodynamic lift instead of hydrostatic lift, at this state the boat will ride on the bow wave leaving the stern wave behind. This speed has to be maintained in order to reduce the risk of having an accident. 

Average product is not as reliable an indicator of how a business is doing as it used to be because of

Answers

That indicator isn't reliable because it doesn't capture the reality of what of a company's performance. A company is judged on quantitative and qualitative grounds. It doesn't tell how much quality is input in the process, how efficient the processes within the company are, how much profit is made, how much resource is spared, etc. It's a flat indicator which doesn't basically provide insights into a firm's operations.

You receive a call at home from a telemarketer who wants you to listen to a pitch for aluminum siding. if you agree to listen, you are more likely to buy siding-a phenomenon known as the foot-in-the-door technique.

Answers

The answer to the given statement above is TRUE. When we say Foot-in-the-Door Technique or the FITD technique, is a technique commonly used in social psychology wherein one is being convinced by the persuader through a modest request, which would then lead the respondent to agree with the said request. 

If the federal reserve conducts an open-market purchase, bank reserves _____ and the money supply _____

Answers

If the federal reserve conducts an open market purchase, bank reserve DECREASE and the money supply INCREASE. The federal reserve has the responsibility to control the amount of money available in the economy. When the federal reserve make a purchase, their reserve will decrease, the money supply in the economy will increase, interest rates will fall and investment spending will increase. 
Final answer:

Open-market purchases by the Federal Reserve lead to an increase in both bank reserves and the money supply, as the Fed creates money to pay for the securities it buys, and the banks that sell the securities deposit those new funds.

Explanation:

When the Federal Reserve conducts an open-market purchase, it is buying securities, often government bonds, in the open market. Through this process, the Fed is effectively creating money, which it uses to pay the sellers of the securities. As a result, bank reserves increase, as the sellers (which are often banks) deposit their new funds.

This addition to the reserves allows banks to make more loans, further increasing the money supply as those newly created funds are deposited and re-loaned throughout the banking system.

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When making a major purchase, first determine your _______ income by subtracting the deductions from your gross pay.

Answers

The answer is "net income".


Net income is equivalent to net earnings (benefit) determined as deals less expense of merchandise sold, moving, general and authoritative costs, working costs, deterioration, intrigue, charges and different costs. This number shows up on an organization's pay proclamation and is a vital proportion of how productive the organization is.  

Net income additionally alludes to a person's salary in the wake of considering expenses and derivations.  


When making a major purchase, first determine your net income by subtracting the deductions from your gross pay.

Why is it important to budget your net pay rather than your gross pay?

When creating a budget, it's crucial to consider net pay as opposed to gross income because it helps you determine how much you can buy and how much you might be able to deduct for taxes. Name two techniques for setting up a budget that can be used to start or modify one.

Before taxes and other deductions are taken out, your gross income is what is shown on your pay stub. Your take-home pay, sometimes referred to as the amount of money that is still available to you after deductions and taxes have been taken out, is your net income. Taxes, employee benefit premiums, and wage garnishments are all possible reductions from net income.

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Advertisements are paid for by whom?

A. Sponsors

B. Debtors

C. Phishers

D. Pretexters

PLZZZ HURRY

Answers

I think its A.sponsors not sure
I'm not sure but I'm pretty sure it's A.Sponsors

The ___________________ is the part of the labor-management agreement that states that employees who receive union benefits must join the union, or at least pay dues to it.

Answers

The UNION SECURITY CLAUSE is the part of the labor management who receive union benefits must join the union or at least pay dues to it.

During an economic downturn, consumers spend considerably less on goods and services. this results in layoffs that are classified as

Answers

During an economic downturn, consumers spend considerably less on goods and services. this results in layoffs that are classified as CYCLICALLY UNEMPLOYED.

A company that announces a manufacturer's suggested retail price and then offers a discount off that price is using ________ pricing.

Answers

A company that announces a manufacturer's suggested retail price and then offers a discount off that price is using reference pricing.
Reference price is announced by purchaser. It is also known as competitive price. Reference pricing or the competitive pricing is the amount, a consumer wants to pay for something in relation to other competitors.

A contract in which the vendor (seller) agrees to convey the title to the real property after the vendee (buyer) has met certain named conditions, and which does not require conveyance within one year, is ordinarily used in the case of a buyer who can only make a small down payment and monthly installments. this type of contract, because it holds disadvantages for both the seller and the buyer, is no longer a popular financing instrument in california.

Answers

Final answer:

The question refers to a land contract or contract for deed, a type of seller financing where the title is retained until full payment. Risks for both buyer and seller make it less popular in some areas like California.

Explanation:

The question is related to a type of contract called a land contract or a contract for deed. This is a form of seller financing that is often utilized when a buyer does not qualify for traditional bank financing. In such a contract, the buyer makes payments directly to the seller over a period of time, and the seller retains the title to the property until the amount is fully paid. During this period, the buyer is responsible for the property's maintenance, taxes, and insurance.

As with any agreement, such contracts have advantages and disadvantages. The disadvantage to the sellers is that they don't get the full payment upfront, and in case of default, they need to go through legal channels to reclaim the property. For the buyers, they might lose the partial payments made and the property if unable to meet the contractual requirements. Such contracts sometimes include automatic adjustments for inflation, ensuring neither party is disadvantaged by significant economic changes.

In California, as in many states, there are legal rules guiding such contracts, as well as consumer protection laws in place to shield both parties involved. Relevance and popularity vary across different markets and legal frameworks.


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