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scZoUnD [109]
1 year ago
6

Last year, Jarod left a job that pays $60,000 to run his own bike-repair shop. Jarod’s shop charges $65 for a repair, and last y

ear the shop performed 3,000 repairs. Jarod’s production costs for the year included rent, wages, and equipment. Jarod spent $50,000 on rent and $100,000 on wages for his employees. Jarod keeps whatever profit the shop earns, but does not pay himself an official wage. Jarod borrowed $20,000 for the shop’s equipment at an annual interest rate of 5 percent. a. What is Jarod’s accounting profit? b. What is Jarod’s economic profit?
Business
1 answer:
Cerrena [4.2K]1 year ago
8 0

Answer:

(a) $45,000

(b) -$16,000

Explanation:

(a) Jarod’s accounting profit:

= Total revenue - Total cost

= (Price charge for repair × No. of repairs) - (Rent + wages)

= ($65 × 3,000) - ($50,000 + $100,000)

= $195,000 - $150,000

= $45,000

(b) Opportunity cost = Previous job earnings + Interest on equipment

                                  = $60,000 + $20,000 × 5%

                                  = $61,000

Jarod’s economic profit:

= Accounting profit - Opportunity cost

= $45,000 - $61,000

= -$16,000

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valentina_108 [34]

Answer:

As per Sales Budget the budgeted sales for the quarter four are $240,000. Below is the Sales budget.

Explanation:

Scora, Inc.    

Sales Budget    

Month Budgeted Unit Sales Budegted Unit Price Budgeted Total Sales

                                  (A)                             (B)               (A*B)

January                          1200                   $50            $60,000

February                         2000                   $50            $100,000

March                         1600                   $50            $80,000

Total for the quarter 4800                   $50            $240,000

Hence, it is concluded that the budgeted sales for the January, February, March are $240,000.

5 0
2 years ago
Which of the following best describes costs assigned to the product under the variable costing method? Direct labor (DL) Direct
masya89 [10]

Answer:

DL, DM, and VOH.

Explanation:

Under the variable costing method, direct labor cost, direct material cost and variable manufacturing overhead cost are cost assigned to the product. administrative, fixed manufacturing overhead cost are not variable cost and hence cannot be assigned to a product under variable costing method. Variable costing methods considers only manufacturing costs that change in total with changes in production level.

3 0
2 years ago
The following are the current​ month's balances for selected accounts of Sandlin Marketing Company. Accounts Payable $ 10 comma
Ksenya-84 [330]

Answer:

$7700

Explanation:

Net Income = Revenue - Expenses

= 9000 - 1300 = $7700

7 0
2 years ago
Ray, a manager at Senzel Inc., wants to implement a new software in the company's processes. This software will help him monitor
Airida [17]

Answer:

C . Consulting

Explanation:

Ray, a manager at Senzel Inc. is utilizing consulting skills.

The lower-level managers he discusses with in order to understand the effect the software will have on the internal environment of the company refers to the CONSULTANT in this scenario.

Consulting can be defined as the process of giving advice or seeking the help of professionals regarding a particular subject in a specific field.

Consulting means to engage in the business of giving advice to professionals in a particular field.

Consulting is the act of helping people to solve problems of moving from their current level to their desired level.

A consultant refers to a professional who renders the service of giving advice to people in a particular field mostly in exchange for a fee.

4 0
2 years ago
Businesses commonly rely upon groups to make decisions because of the many advantages to group decision making. Which of the fol
Andrei [34K]

Answer:

Almost every other business in this universe now relies upon group thinking rather than individual approach to anything.

It has several advantages, some of them are pointed out below:

o) Equality bias, when there are group discussion, this means that everyone has a part of say in the final decision and that leads to equality bias, which is beneficial.

o) More alternatives are generated, it is a fact that when an individual takes a decision, he/she is neglecting a lot of other options to explore which could be a lot beneficial for the business.

o) More acceptance of the final decision, Since the final decision taken is with the approval and consent of everyone, there is a possibility that the final decision will be more acceptable.

o) Lastly, It creates Synergy, synergy is the idea that a decision as a whole is better than in parts.

Hope this helps you. Good Luck.

3 0
2 years ago
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