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9966 [12]
2 years ago
13

Raj opens up a lemonade stand for two hours. He spends $10 for ingredients and sells $60 worth of lemonade. In the same two hour

s, he could have mowed his neighbor’s lawn for $40. Raj has an accounting profit of________ and an economic profit of____________ .
Business
1 answer:
prisoha [69]2 years ago
6 0

Answer:

Accounting profit = $50

Economic profit = $10

Explanation:

Accounting profit = Revenue - Explicit cost

 $60 - $10 = $50

Economic profit = Accounting profit - Opportunity cost

$50 - $40 = $10

I hope my answer helps you

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Business products that are purchased routinely, do not become part of finished goods, and are expense items rather than capital
bixtya [17]

Answer:

e. accessory equipment

Explanation:

Accessory equipment are the goods and services that are used by firms and organizations to complete their daily operation. They consist of products and services which are used in the production processes. Likewise, they are considered import which makes them expensive compared to other capital goods. These goods can easily be replaced without affecting the whole process.

8 0
2 years ago
Harrington Company has two products: A and B. The annual production and sales of Product A is 1,750 units and of Product B is 1,
Molodets [167]

Answer:

The overhead cost assigned to each unit of product B is $46.2 per unit.

Explanation:

Overhead absorbed in each product B can be calculated as under:

Overhead Absorbed = Overhead Absorption Rate * Absorption Basis

Here in this question, the absorption basis is Direct labor hours. So the direct labor hour per unit of Product B is 0.7 Hr and the OAR is $66.

By putting values in the above equation, we have:

Overhead Absorbed = $66 per unit * 0.7Hrs = $46.2 per unit

3 0
2 years ago
The seabury Corporation has a current ratio of 3.5 and an acid-test ratio of 2.8. The Corporations current assets consist of cas
SVETLANKA909090 [29]

Answer:

The correct answer is A

Explanation:

The current liabilities is computed as:

Current Assets (CA) = Quick assets (QA)+ Inventory (I)

CA = QA + $49,000

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2.8 = QA / CL

QA = 2.8 × CL                              

Current Ratio (CR) = CA / CL

3.5 = CA / CL

Putting CA = QA + Inventory

3.5 = ( QA + $49,000) / CL

Now, Putting QA = 2.8 × CL

So,

3.5 = [( 2.8 × CL ) + $49,000] / CL

3.5 = 2.8 CL / CL + $49,000 / CL

3.5 = 2.8 + ($49,000 / CL)

3.5 - 2.8 = $49,000 / CL

0.7 = $49,000 / CL

CL = $49,000 / 0.7

CL = $70,000

4 0
2 years ago
The spread between the interest rates on Baa corporate bonds and U.S. government bonds is very large during the Great Depression
Ray Of Light [21]

Answer:

During the Great Depression many businesses failed.  The default risk for the corporate  bond increased compared to the default-free Treasury bond.  The demand for corporate bonds decreased while the demand for Treasury bonds increased resulting in a larger risk  premium.

Explanation:

5 0
2 years ago
The exchange rate for the yuan is quoted at 6.58 to the us$ if this changes to 6.25 yuan, what would be the change in price
Oliga [24]
In order to obtain the change in price, the local price of the yuan must be known. Next is to take the difference of the reciprocal of the two prices, then multiply it to the local price. The solution is: change in price = 275 (1/ 6.58 - 1/6.25) therefore, the change in price is equal to $2.21
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