Calculate the added value

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Reference no: EM13761180

8. Calculate the added value for each of the following firms.

Microsoft:

Value of output $2,750

Wages and salaries 400

Cost of capital 40

Cost of materials 1,650

Barclays Bank:

Value of output $5,730

Wages and salaries 3,953

Cost of capital 916

Cost of material 556

General Motors:

Value of output $50,091

Wages and salaries 29,052

Cost of capital 15,528

Cost of materials 7,507

9. In measuring economic profit:

a. How do you deal with a one-time event?

b. How do you deal with money provided by relatives to get the business started?

c. How do you handle off-balance-sheet expenses-that is, expenses that are incurred by the firm but are not measured as part of the firm's balance sheet?

Reference no: EM13761180

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