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denis-greek [22]
2 years ago
5

Zippy is earning ​$30 comma 000 per year working for​ Joe's Car Repair. He also has savings of ​$150 comma 000​, on which he is

earning​ 10% annual interest. He decides to leave​ Joe's Car Repair to invest his savings in starting his own car repair business. In the first​ year, Zippy's Speedy Car Repair earns revenues of ​$250 comma 000 and has explicit costs of ​$100 comma 000. ​Zippy's economic profit​ (or loss) in the first year is ​$ nothing. ​(Round your answer to the nearest​ dollar.)
Business
1 answer:
shepuryov [24]2 years ago
8 0

Answer: $105,000

Explanation: In Economics the term profit refers to the amount a company or an individual left with after paying for implicit and explicit cost. Explicit cost means cost paid to others for their services.

While, Implicit cost or opportunity cost is the cost of loosing profits due to choosing one alternative over other. In this case Zippy's salary and his interest on savings is his implicit cost.

therefore,

Economic profit = $250,000 - ( $30,000 + $15,000 + $100,000 )

                          =  $105,000

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7 0
2 years ago
If lynx corp. estimates its bad debt to be 1% of net credit sales, what will be the balance in the allowance for doubtful accoun
hodyreva [135]
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4 0
2 years ago
At a decision point in a decision tree, which machine would you select when trying to maximize payoff when the anticipated benef
Marat540 [252]

Answer:

Machine C

Explanation:

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For Machine A

= $45,000 × 90%

= $40,500

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= $60,000 × 75%

= $45,000

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8 0
2 years ago
Write 3 to 5 sentences explaining which levels of production provide Alonzo’s cycling with the maximum profit
Delvig [45]

The relationship between cost, revenue and profit can be presented using the formula:

Profit = Revenue - Cost

However, in the table given, the number of bikes produces varies. We cannot properly compare the profits per day. To be consistent, let us determine the profit per unit of bike produced. Simply divide the profit with the number of bikes produced (1st column). After you see the results, we can see that the highest profit is $17.5 per unit of bike produced. Therefore, the maximum profit can be attained when 4 bikes are produced each day.

8 0
2 years ago
Read 2 more answers
The accounts of Melissa Manufacturing showed the following balances at the beginning of​ December: Account Debit Raw Materials I
Rudik [331]

Answer:

$115,000

Explanation:

Data provided as per the question is below:-

Beginning balance = $81,000

Direct material issued = $27,000

Direct labor incurred = $7,000

The computation balance Process Inventory is shown below:-

Balance in the​ Work-in-Process Inventory = Beginning balance + Direct material issued + Direct labor incurred

= $81,000 + $27,000 + $7,000

= $115,000

4 0
2 years ago
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