Answer:
$63,620
Explanation:
Calculation to determine the amount of net income or net loss
Using this formula
Net income = Total debit - Total credit
Let plug in the formula
Net income=$570,210 -$506,590
Net income=$63,620
Therefore the amount of net income is $63,620
Why is developing a reputation as a subject matter expert important for a leader if leadership deals so heavily with interpersonal skills
Answer:
Reputation is very important for a leader. If a leader has god interpersonal skills but lacks in good reputation people might hesitate to associate with him and support his activities.
Explanation:
Reputation is most valuable asset for any leader. A leader may have good knowledge of everything, he may have good interpersonal skills but reputation overcomes all of these qualities. Strong reputation of a leader will make it easy for him to earn popularity and respect among people. Reputation is the main quality which leads to success to a leader.
On December 31, there were 53 units remaining in ending inventory. These 53 units consisted of 9 from January, 10 from February, 14 from May, 8 from September, and 12 from November. Using the specific identification method, what is the cost of the ending inventory
Answer:
Cost of the ending inventory = $7,108
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
A company had the following purchases during the current year:
January 17 Units at $112
February 37 Units at $123
May 32 Units at $135
September 29 Units at $143
November 27 Units at $153
On December 31, there were 53 units remaining in ending inventory. These 53 units consisted of 9 from January, 10 from February, 14 from May, 8 from September, and 12 from November. Using the specific identification method, what is the cost of the ending inventory?
Explanation of the answer is now provided as follows:
Specific identification method is an inventory method under which costs of goods sold and the closing/ending inventory are calculated using the particular cost of each inventory batch at the moment they were received.
Therefore, cost of the ending inventory is calculated as sum of the product of the number of closing units from each month and the cost per unit of purchases in that month.
Therefore, we have:
Cost of the ending inventory = (Number of closing units from January * Cost per unit of January Purchases) + (Number of closing units from February * Cost per unit of February Purchases) + (Number of closing units from May * Cost per unit of May Purchases) + (Number of closing units from September * Cost per unit of September Purchases) + (Number of closing units from November * Cost per unit of November Purchases) ………… (1)
Substituting the relevant values into equation (1), we have:
Cost of the ending inventory = (9 * $112) + (10 * $123) + (14 * $135) + (8 * $143) + (12 * $153) = $7,108
Bellevue Company has 26,000 units of inventory on hand at December 31. It sold 1,950 units which are in transit and were shipped FOB destination. Bellevue purchased 3,250 units which were shipped FOB shipping point by the seller and are still in transit. What is the total amount of inventory to which Bellevue has legal title at December 31
Answer:
24050
Explanation:
Calculation to determine the total amount of inventory to which Bellevue has legal title at December 31
Using this formula
Inventory=Inventory on hand at December 31- Units in Transit
Let plug in the formula
Inventory=26,000 units- 1,950 units
Inventory=24050
Therefore the total amount of inventory to which Bellevue has legal title at December 31 is 24050
Current market trends and consumer preferences across the globe
Answer:
Consumers Will Abandon Brands That Don’t Support Their Values In Favor Of Those That Do. How To Meet Reimagined Consumers Where They Are, Building New Loyalty & Revenue Streams. Strategy. Consumer Values. 25K Consumers Surveyed. 14 Industries.
I HOPE THIS HELPS PLS BRAINLIST?
Highest and best use would best be defined as:
Answer:
The reasonable, probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value.
Explanation:
Vextra Corporation is considering the purchase of new equipment costing $38,000.The projected annual cash inflow is $11,600, to be received at the end of each year.The machine has a useful life of 4 years and no salvage value.Vextra requires a 12% return on its investments.The present value of an annuity of $1 for different periods follows:Periods 12 Percent1 0.89292 1.69013 2.40184 3.0373What is the net present value of the machine (rounded to the nearest whole dollar)?a. $(35,233).b. $(2,767).c. $38,000.d. $(3,700).e. $5,233.
Answer:
b. $(2,767).
Explanation:
The computation of the net present value is shown below:
= Present cash flows - initial investment
= ($11,600 × 3.0373) - $38,000
= $35,232.68 - $38,000
= -$2,767.32
= -$2,767
Hence, the option b is correct
We simply applied the above formula to determine the net present value
Unexpected low inflation helps whom: Group of answer choices debtors students workers creditors capitalists
Answer:
creditors
Explanation:
Inflation is a persistent rise in the general price levels
Types of inflation
1. demand pull inflation – this occurs when demand exceeds supply. When demand exceeds supply, prices rise
2. cost push inflation – this occurs when the cost of production increases. This leads to a reduction in supply. Higher prices are the resultant effect
Costs of inflation
Shoe leather cost is when people try to spend money immediately so they would not be holding money for a long time. This is because money loses its value in an inflation.
Menu costs are the costs of changing price constantly as a result of inflation, When there is inflation, prices increases regularly. As a result prices needs to be updated regularly.
When inflation is low, creditors benefit because they lend in nominal terms. Thus, loss in the amount borrowed is minimal
Do you think the licensing process for international medical graduates is an unnecessary hurdle meant to shield U.S. doctors from foreign competition?
Answer:
No licensing is right. Doctors in U.S. are spending more on medical studies than any other country. It is necessary for other country medical students to gain license in order to do practice in the country.
Explanation:
In U.S. doctors are in deficiency so the country cannot completely cease employment for foreign doctors. The country needs to welcome foreign doctors but it is also necessary to safeguard home doctors. If U.S. will not safeguard rights of home country doctors then they will be demotivated and will not be patriotic for the country.
In a perpetual inventory system a.the inventory records cannot be computerized. b.the amount of inventory for sale and the amount sold are not listed in the inventory account. c.a count must be made in order to know the inventory amount. d.each purchase and sale of inventory is recorded in the inventory account.
Answer:
d. each purchase and sale of inventory is recorded in the inventory account.
Explanation:
In a perpetual inventory system we keep track of inventory balance and cost of sales whenever a sale or purchase transaction occurs. Under the perpetual inventory system, the firm always keeps updated inventory records.
Blart Corp. recently paid a dividend of $5.00 per share. Analysts forecast future dividends will increase by 2% forever. The required rate of return that investors demand to hold Blart Corp.'s stock is 8% What is its estimated price per share today
Answer: $85.0
Explanation:
The formula to calculate the estimated price per share today will be:
Po = Do (1 + g) / (r - g)
Where,
Po = Current price
Do = Current dividend = 5.00
g = Dividend growth = 2% = 0.02
r = Required rate of return = 8% = 0.08
Therefore, the estimated price per share today will be:
= 5.00(1 + 0.02) / (0.08 - 0.02)
= 5.00(1.02) / 0.06
= 5.10 / 0.06
= 85.00
Therefore, the answer is $85
You are to receive the following payments at the end of the following periods:
Year 1 : $250
Year 2: $300
Year 3: $450
The interest rate is 15% per year.
Required:
What is the future value of these cash flows 20 years from now?
Answer: $12,113.14
Explanation:
Find out the future value of each payment 20 years from now then sum up the values.
Year 1:
= 250 * ( 1 + 15%)¹⁹
= $3,557.94
Year 2:
= 300 * ( 1 + 15%)¹⁸
= $3,712.636
Year 3:
= 450 * ( 1 + 15%)¹⁷
= $4,842.5688
Future value of all:
= 3,557.94 + 3,712.636 + 4,842.5688
= $12,113.14
When computing equivalent units of production, the method that combines partially completed units in beginning inventory with current-period production is the
Answer: the weighted average method
Explanation:
When computing the equivalent units of production, the weighted average method can be used in the combination of partially completed units in the beginning inventory with the current-period production.
In Weighted Average Cost method, a weighted average is used in the determination of the amount which gives into the inventory and the cost of goods sold.
Kenner Company is considering two projects. Project A Project B Initial investment $85,000 $24,000 Annual cash flows $20,676 $ 6,011 Life of the project 6 years 5 years Depreciation per year $14,167 $ 4,800 Suppose that Kenner Company requires a minimum rate of return of 8%. Which project is better in terms of net present value
Answer: Project A is better as it has a higher NPV of $76,075.70
Explanation:
Annual cashflow of Project A = Annual cashflow + Depreciation
= 20,676 + 14,167
= $34,843
Project B cashflow = 6,011 + 4,800
= $10,811
As these are constant amounts, they are to be considered annuities.
Find the present value of these annuities and deduct the initial investment from them for the NPV.
Present value of annuity = Annuity * Present value interest factor of annuity, 8%, number of years
Project A NPV = (34,843 * Present value interest factor of annuity, 8%, 6 periods) - 85,000
= (34,843 * 4.6229) - 85,000
= $76,075.70
Project B NPV = (10,811 * Present value interest factor of annuity, 8%, 5 periods) - 24,000
= (10,811 * 3.9927) - 24,000
= $19,165.08
Project A is better as it has a higher NPV of $76,05.70
Kandy Kane Corporation has income before taxes of $400,000 and a loss from discontinued operations pretax of $100,000. If the income tax rate is 25% on all items, the income statement should show income tax expense of
Answer:
The income tax expense = $100000
Explanation:
Below is the given values:
Income before the taxes = $400000
Loss discontinued = $100000
Income tax rate = 25%
In order to calculate the income tax expense, just find the 25% of the income before tax and the resulting answer will be the income tax expense.
The income tax expense = 25% x 400000
The income tax expense = $100000
Which of the following is an an example of a sunk cost?
a. Jossie purchases a textbook online but returns it because it is the wrong edition
b. Maria goes to a lunch vending machine to get a quick snack. In her haste, she mistakenly pushes the wrong buttons and gets a wheatgrass sandwich instead of hot pocket she was craving.
c. Kennys new smartphone stops working, but it is still under warranty, so he is able to have it repaired at no cost.
d. Antonio goes to the movies. After the opening credits, he realizes he is in the wrong theater. He informs the manager and is able to get a refund.
Answer:
Option b is correct.
Explanation:
Option b is correct.
The sunk cost is the cost that has been incurred and which can not be recovered. Thus, anycost that can not be recovered is called the sunk cost. Therefore, the option 'b' that states pushing wrong button and getting a wheatgrass sandwich is the sunk cost because it can not be returned.
Worldwide Manufacturing produces a unique valve and has the capacity to produce 50,000 valves annually. Currently Worldwide produces 40,000 valves and is thinking about increasing production to 45,000 valves next year. What is the most likely behavior of total manufacturing costs and unit manufacturing costs, given this change
Answer:
c) Total manufacturing costs will increase and unit manufacturing costs will also decrease.
Explanation:
Based on the information given the most likely behavior of total manufacturing costs and unit manufacturing costs, given this change is that TOTAL MANUFACTURING COSTS WILL INCREASE AND UNIT MANUFACTURING COSTS WILL DECREASE since Manufacturing cost consists of DIRECT MATERIALS, DIRECT LABOR, VARIABLE MANUFACTURING OVERHEAD and FIXED MANUFACTURING OVERHEAD in which direct materials, direct labor and variable manufacturing overhead are Variable expense which means that if the production increases from $40,000 to $45,000 the total manufacturing cost will as well INCREASE but due to the FIXED MANUFACTURING COST involved , the unit manufacturing cost will have to decrease.
The controller of Oriole Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs.
Month Total Total
Maintenance Costs Machine Hours
January $2,860 320
February 3,160 370
March 3,760 520
April 4,660 670
May 3,360 520
June 5,260 720
Determine the variable cost components using the high-low method. (Round answer to 2 decimal places e.g. 2.25.)
Variable cost per machine hour $
Determine the fixed cost components using the high-low method.
Total fixed costs $
Answer:
Results are below.
Explanation:
Giving the following information:
Maintenance Costs Machine Hours
January $2,860 320
February 3,160 370
March 3,760 520
April 4,660 670
May 3,360 520
June 5,260 720
To calculate the variable and fixed costs, we need to use the following formulas:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (5,260 - 2,860) / (720 - 320)
Variable cost per unit= $6
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 5,260 - (6*720)
Fixed costs= $940
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 2,860 - (6*320)
Fixed costs= $940
Presented below are three revenue recognition situations.
a. Groupo sells goods to MTN for $908,000, payment due at delivery.
b. Groupo sells goods on account to Grifols for $797,000, payment due in 30 days.
c. Groupo sells goods to Magnus for $499,000, payment due in two installments, the first installment payable in 18 months and the second payment due 6 months later. The present value of the future payments is $462,200.
Required:
Indicate the transaction price for each of these transactions and when revenue will be recognized.
Answer:
Groupo
Transaction Price When to recognize revenue
a. $908,000 Delivery Time
b. $797,000 30 days' time
c. $462,200 18 months and 24 months' time
Explanation:
a) Data and Analysis:
a. $908,000 Delivery Time
b. $797,000 30 days' time
c. $462,200 18 months and 24 months' time
b) For the goods sold on installment sales, the payments are also deferred. Therefore, the seller does not recognize any gain until installments are received. Since installment sales encompass much longer time periods compared to credit sales, there are no discounts offered for early payments. The seller in an installment sales maintains an ownership interest in the goods sold until the buyer pays the balance due in full.
Bethany needs to borrow $10,000. She can borrow the money at 6% simple interest for 5 yr or she can borrow at 5% with interest compounded continuously for 5 yr.
a. How much total interest would Bethany pay at 6% simple interest?
b. How much total interest would Bethany pay at 5% interest compounded continuously?
c. Which option results in less total interest?
Answer:
a. $3000
b. 2840.25
c. compounded continuously
Explanation:
a. principal amount, p = $10000
Interest rate in the case of simple interest = 6%
Time, t = 5 years
Interest amount = Prt
Interest amount = 10000 x 6% x 5 = $3000
b. principal amount, p = $10000
Interest rate, r = 5%
Time, t = 5 years
Interest amount = Pe^(rt) - P
Interest amount = 10000 (2.71)^(5% x 5) - 10000
Interest amount = 2840.25
c. Compounded continuously has a lower interest amount.
Each scenario below gives some information about price elasticity of demand for a firm. Use this information to answer the questions.
Honest Abe's Used Cars estimates the price elasticity of demand for their cars to be 5.10. Last month, Abe tried a new marketing scheme which decreased the number of cars sold by 57%.
Abe must have___prices. Abe's prices must have changed by___. Therefore, Abe's total revenue____.
At Webs-R-Us, a website design company, the new manager has decided to increase the price of Webs-R-Us services by 45%. If Webs-R-Us has a price elasticity of demand at 0.70, we can expected the number of websites designed to____. Therefore, Webs-R-Us's total revenue will The number of websites will change by_____.
Answer:
Increased
2.907%
decreased
decrease
increase
0.64
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
Abe's elasticity of demand is elastic because it has a value greater than 1.
if quantity demanded decreases, it means that price must have been increased. this would lead to a decrease in total revenue
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases
Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.
In the Month of March, Digby received orders of 123 units at a price of $15.00 for their product Deal. Digby uses the accrual method of accounting and offers 30 day credit terms. Digby delivers 123 units in April. They received payment for 62 units in March, and 62 units in April. In the March income statement, how much revenue is recognized on the March income statement from this order
Answer:
The amount of revenue is recognized on the March income statement from this order is $1,845.00.
Explanation:
Accrual accounting can be described as a method of accounting in which revenue or expenses are recorded at the time of the transaction rather than when payment is received or made.
Since this transaction occurred in March, the total revenue of orders of 123 units received in the month of March will be recognized on the March income statement from this order. That is:
Amount of revenue to recognized in March = 123 * $15.00 = $1,845.00
Therefore, the amount of revenue is recognized on the March income statement from this order is $1,845.00.
Hoi Chong Transport, Ltd., operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 177,000 kilometers during a year, the average operating cost is 12.3 cents per kilometer. If a truck is driven only 118,000 kilometers during a year, the average operating cost increases to 15.5 cents per kilometer.
Required:
a. Using the high-low method, estimate the variable and fixed cost elements of the annual cost of the truck operation.
b. Express the variable and fixed costs in the form Y = a + bX.
c. If a truck were driven 147,000 kilometers during a year, what total cost would you expect to be incurred?
An increase in the price of rubber coincides with an advance in the technology of tire production. As a result of these two events,a. the demand for tires decreases and the supply of tires increases.b. the demand for tires is unaffected and the supply of tires decreases.c. the demand for tires is unaffected and the supply of tires increases.d. None of the above is necessarily correct. What should be the demand and supply?
Answer:
d
the demand for tires is unaffected and effect on the supply of tires could increase, decrease, or stay the same.
Explanation:
An increase in the price of rubber would lead to an increase in the cost of producing tires. Rubber is an input required in the production of tires.
As a result of the increase in the cost of rubber, the supply of rubber would decrease. This would lead to a leftward shift of the supply curve. Equilibrium price would increase and quantity would decrease
As a result of the advance in technology, there would be an increase in the supply of tires. As a result, the supply curve shifts outward. Equilibrium price would decrease and quantity would increase
Taking these wo effects together, the demand for tires is unaffected and effect on the supply of tire is indeterminate
We Are the World is an importing company that specializes in importing hand-made arts and crafts from crafters and artisans around the world. The company has about $4 million worth of stock outstanding. Due to its desire to avoid double taxation, it is structured so that its individual shareholders pay taxes on all of the company's income. The shareholders report the flow-through of income and losses on their personal tax returns and are assessed at their individual tax rates. We Are the World is a(n):_____.
a. limited liability company (LLC).
b. C corporation.
c. S corporation.
d. G corporation.
e. investment trust.
Answer:
c. S corporation.
Explanation:
S corporations that are elected for passing out the corporate income, losses, deductions and credits via to the shareholders for the federal tax motive. It is responsible for tax on specific gains and the passive income for the entity level
Also the shareholders could reported the flow via income and the losses on the personal income tax returns and can be assess at individual tax rates
So, the option c is correct
The management of Penfold Corporation is considering the purchase of a machine that would cost $360,000, would last for 10 years, and would have no salvage value. The machine would reduce labor and other costs by $50,000 per year. The company requires a minimum pretax return of 9% on all investment projects. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided. The net present value of the proposed project is closest to (Ignore income taxes.):
Answer:
the net present value is -$72,050
Explanation:
The computation of the net present value is shown below
= $50,000 per year ×PVIFA factor at 10 years for 9% - $360,000
= $50,000 ×5.7590 - $360,000
= $287,950 - $360,000
= -$72,050
hence, the net present value is -$72,050
So the same should be relevant and considered too
According to the authors, price controls on water, designed to ensure that lower income people can afford water, have resulted in
Answer: a. a reduced supply of usable water
Explanation:
I am unsure as to the text being referred to but this should be the correct answer.
The market allocates resources efficiently based on price. This means that it sets the price such that people who can afford the goods are able to buy them. This ensures that not everybody gets the good and the good can be sustainably used.
If the government imposes price controls on a good as they did here. The market would be unable to efficiently allocate the water so more people than before would be able to access it. This would lead to the supply being used up so there will be a reduced supply of the good which in this case is water.
Rocky Guide Service provides guided 1–5 day hiking tours throughout the Rocky Mountains. Wilderness Tours hires Rocky to lead various tours that Wilderness sells. Rocky receives $1,600 per tour day, and shortly after the end of each month Rocky learns whether it will receive a $160 bonus per tour day it guided during the previous month if its service during that month received an average evaluation of "excellent" by Wilderness customers. The $1,600 per day and any bonus due are paid in one lump payment shortly after the end of each month.
On July 1, based on prior experience, Rocky estimated there is a 40% chance it will earn the bonus for July tours. It guided a total of 10 days from July 1–July 15.
On July 16, based on Rocky’s view that it had provided excellent service during the first part of the month, Rocky revised its estimate to an 90% chance it would earn the bonus for July tours. Rocky also guided customers for 15 days from July 16–July 31.
On August 5 Rocky learned it did not receive an average evaluation of "excellent" for its July tours, so it would not receive any bonus for July, and received all payment due for the July tours.
Rocky bases estimates of variable consideration on the expected value it expects to receive.
Required:
Prepare the journal entries to record the transactions above.
Answer:
Please find the complete question in the attached file.
Explanation:
Rocky believed there would be a [tex]30\%[/tex] possibility of a July bonus for touring, i.e [tex]< 50\%[/tex], from July 1-July 15 (10 days)-. Therefore no bonus can be calculated as [tex]\$2,400[/tex] / day trip \times 10 days =[tex]\$2,400[/tex] throughout this duration.
The expected 15-day revenues from 16th July – 31st July may well be calculated as [tex]\$2,400 \times 15 \ days = \$36.000.[/tex] Rocky calculated that it would get the bonus [tex]80\%[/tex] of the time. Estimates a [tex]\$240/day\ bonus \times (10\ days + 15\ days) = \$6,000[/tex]
R(0,t) is the Spot Zero-Coupon (or Discount) Rate. It is the annualized rate on a pure Unit Discount bond B(0,t) - the bond that pays 1 dollar at time t. Assume that R(0,13) = 8.00 per cent. What is the price of B(0,13)? Answer with three decimal digits accuracy. Example: 0.728
Answer:
0.368
Explanation:
Price of B(0,13) = 1 / (1 + interest rate)^years
Price of B(0,13) = 1 / (1 + 8%)^13
Price of B(0,13) = 1 / (1+0.08)^13
Price of B(0,13) = 1 / (1.08)^13
Price of B(0,13) = 1 / 2.7196237
Price of B(0,13) = 0.3676979247
Price of B(0,13) = 0.368
Giannitti Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. Data for the upcoming year appear below:
Estimated machine-hours 72,900
Estimated variable manufacturing overhead $ 3.50 per machine-hour
Estimated total fixed manufacturing overhead 838,710
The predetermined overhead rate for the recently completed year was closest to:________.
A. $6.66 per machine-hour
B. $10.50 per machine-hour
C. $8.69 per machine-hour
D. $15.00 per machine-hour
Answer:
D. $15.00 per machine hour
Explanation:
The computation of the predetermined overhead rate for the recently completed year is seen below;
First, we will calculate the fixed overhead rate.
Fixed overhead rate = Estimated total fixed manufacturing overhead / Estimated machine - hours
Fixed overhead rate = $838,710 / 72,900
Fixed overhead rate = $11.50
Then,
Predetermined overhead rate = Fixed overhead rate + Variable overhead rate
Predetermined overhead rate = $11.50 + $3.50
Predetermined overhead rate for the recently completed year was closest to $15.00 per machine hour
Jake lives in Detroit and runs a business that sells boats. In an average year, he receives $722,000 from selling boats. Of this sales revenue, he must pay the manufacturer a wholesale cost of $422,000; he also pays wages and utility bills totaling $268,000. He owns his showroom; if he chooses to rent it out, he will receive $2,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Jake does not operate this boat business, he can work as a paralegal, receive an annual salary of $21,000 with no additional monetary costs, and rent out his showroom at the $2,000 per year rate. No other costs are incurred in running this boat business.
Identify each of Felix’s costs in the following table as either an implicit cost or an explicit cost of selling guitars.
Implicit Cost Explicit Cost
The wholesale cost for the guitars that Felix pays the manufacturer
The rental income Felix could receive if he chose to rent out his showroom
The salary Felix could earn if he worked as a paralegal
The wages and utility bills that Felix pays
Complete the following table by determining Felix’s accounting and economic profit of his guitar business. Profit (Dollars)Accounting Profit Economic Profit
Answer:
Explicit Cost
The wholesale cost for the guitars that Felix pays the manufacturerThe wages and utility bills that Felix paysImplicit Cost
The salary Felix could earn if he worked as a paralegal The wages and utility bills that Felix paysAccounting profit = $32,000
Economic profit = $9,000
Explanation:
Accounting profit= total revenue - explicit cost
Total revenue =price x quantity sold
Explicit cost includes the amount expended in running the business.
They include rent , salary and cost of raw materials
Economic profit = accounting profit - implicit cost
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives
