Calculate the yearly economic profits

Reference no: EM131777268

Question: You are the manager of a small farm. Your yearly revenue is $300,000. You work in your farm. You could work somewhere else for $50,000 a year. However, if you work elsewhere the lack of supervision hurts performance and farm revenues will decrease by $20,000 as a result. You pay other workers $140,000 a year. The land is yours, and could be rented for a different purpose or to a different farmer for $50,000 a year. Every year, you get a farming license for $50,000. You buy it January 1st and it is good for one whole year. The yearly cost of seed, water and fertilizer is $40,000. It is now March

a. Calculate your yearly economic profits

b. Calculate your yearly accounting profits.

c. Should you keep operating until the end of the year?

d. Should you keep operating next year? You may assume all the numbers from this year stay the same and there is no uncertainty.

Reference no: EM131777268

Questions Cloud

What variables are being used to segment these markets : Describe the markets that the Today Show appears to be targeting. What variables are being used to segment these markets?

Determine that which line should the manager acquire : A manager is considering two technological lines to produce candies. The first one requires $1 million in initial investment and produces 150 kilograms.

Describe the elements to a competitive : 1 . Describe the elements to a competitive and desirable total rewards system. 2. How will this concept assist a company to achieve their strategic goals?

What is lsw ending inventory and cost of goods manufactured : Question - Process costing. Required: Using the FIFO method, what is LSW's ending inventory and cost of goods manufactured

Calculate the yearly economic profits : You are the manager of a small farm. Your yearly revenue is $300,000. You work in your farm. You could work somewhere else for $50,000 a year.

What did personally appreciate about what interviewee said : What did you personally appreciate about what your interviewee said? OR: Relate your interviewee's orientation to religion to your own.

Stakeholders during the communication process : Can it be possible to include all stakeholders during the communication process? Do you feel that organizations exclude many stakeholders

Describe the higher risk of environmental conditions : The mandatory coverage provision of the ACA: Presently, US citizens must report on their tax return whether they have health insurance coverage.

Situation in the middle east that has arisen : Select a current news item pertaining to an ethical situation in the Middle East that has arisen in a business or non-profit organization.

User Account

All Pages