Calculate Economic profit and Accounting profit from the figures given below for ABC Company. Total revenue $ 500,000 Wages and salaries $ 40,0000 Forgone salary $ 80,000 Interest paid $ 10,000 Forgone rent $ 10,000 Raw materials $ 50,000 Other payments $ 20,000 Forgone interest $ 7,000
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Calculate Economic profit and Accounting profit from the figures given below for ABC Company.
| Total revenue | $ 500,000 |
| Wages and salaries | $ 40,0000 |
| Forgone salary | $ 80,000 |
| Interest paid | $ 10,000 |
| Forgone rent | $ 10,000 |
| Raw materials | $ 50,000 |
| Other payments | $ 20,000 |
| Forgone interest | $ 7,000 |
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- Explain in words why a profit-maximizing film will not choose to produce at a quantity where marginal cost exceeds marginal revenue.Calculate Economic profit and Accounting profit from the figures given below for ABC Company. Total revenue $ 500,000 Wages and salaries $ 40,0000 Forgone salary $ 80,000 Interest paid $ 10,000 Forgone rent $ 10,000 Raw materials $ 50,000 Other payments $ 20,000 Forgone interest $7000Calculate economic profit and accounting from the figures given below for ABC company a) total revenue. $500,000 b) wages and salaries. $ 40,0000 c)forgone salary. $ 80,000 d) interest paid. $ 10,000 e) forgone rent. $10,000 f) raw materials. $ 50,000 g) other payments. $20,000 h) forgone interest. $ 7000
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- Last year Bill Bailey quit his $20,000 per year job and invested $200,000 to open the Bargain Bonanzas. This year he sold for $600,000 merchandise he bought for $400,000. He paid his sales clerks $50,000. Bill could have earned 10 percent interest on other investments. This year, Bill’s: accounting and economic profit were both $150,000 economic loss was $70,000 economic profit was $110,000 economic profit was $220,000 less than his accounting profitZippy is earning $25,000 per year working for Joe's Car Repair. He also has savings of $150,000, 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 ears revenues of $200,000 and has explicit costs of $100,000. Zippy's economic profit (or loss) in the first year is $. (round your answer to the nearest dollar. )The data in the table represents annual costs and revenue for Aurora’s Orchid Emporium. Aurora works 60 hours a week at the Orchid Emporium. Aurora owns the building that houses the Orchid Emporium, and if she closed the shop, she could rent out the building for $40,000 per year go to work for Acme Flowers, and earn a salary of $30,000 per year. Calculate the economic profit and economic cost for Aurora’s Orchid Emporium. Are these figures the same as the accounting cost and accounting profit? Explain. Wages paid: $22,000 Interest Paid on Loans: $8,000 Other Expenditures for Factors: $26,000 of Production Total Revenue: $115,000.
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