Illustrate what are the opportunity costs for the manager

Assignment Help Business Economics
Reference no: EM1351400

A few years ago a construction manager earning $70,000 per year working for a regional home builder decided to open his own home building company. He took $100,000 out of one of his investment accounts that had been earning around 6% a year and used that money to start up the business. He worked hard the first year, hiring one employee (his only salary cost for the business was the $40,000 paid to this employee), and generated total sales of $1,000,000. Total material and subcontracted labor costs for the year were $900,000. Calculate accounting profit. What are the opportunity costs for the manager of being in this business relative to returning to his old job? What is the economic profit of the business?

Reference no: EM1351400

Questions Cloud

Cost behavior and cost-drivers affect flexible budgets : How do cost behavior and cost-drivers affect flexible budgets and the sales budget might be crucial, but what about the other budgets?
Must restaurants provide calorie and nutrition information : Must restaurants provide calorie and nutrition information before they are required to do so by law
What is the temperature of the flame : A boy whirls a stone using an r-m long string in a horizontal circle h m above the ground. The string broke, and the stone flies off horizontally and strike the ground x m away.The velocity with which the stone flies off the circle is? The centrip..
What is retention management : Retention management - What is retention management and why is it important for an organization to analyze its turnover?
Illustrate what are the opportunity costs for the manager : Illustrate what are the opportunity costs for the manager of being in this business relative to returning to his old job. What is the economic profit of the business.
Determine the percent cost of the trade credit : Stone's Stones and Rocks buys on terms of 2/10, net thirty from its suppliers. If it pays on the eight day, taking the discount, determine the percent cost of the trade credit that it receives.
Albert bandura theory of observational learning : Describe the role of reinforcement in Albert Bandura's theory of observational learning.
Page frames for public use and seven-page program : Given that main memory is consisted of three page frames for public use and that seven-page program (with pages a, b, c, d, e, f, g) requests pages in the following order: a, b, a, c, d, a, e, f, g, c, b, g.
How far would it have traveled in a vacuum : A flea jumps straight up to a maximum height of 0.470 m. What is its initial velocity v_0 as it leaves the ground.

Reviews

Write a Review

Business Economics Questions & Answers

  Major conflict between the us army also native americans

the last major conflict between the US army also Native Americans took place at

  Functional organizations and product organization

Define the following: functional organizations, product organization, geographic organization, matrix organization also network organization.

  Fiscal policies might activist keynesian economists

Which fiscal policies might activist Keynesian economists recommend helping a depressed economy regain full employment

  Illustrate what would happen to the profits cpi makes

Illustrate what would happen to the profits CPI makes via their toothpaste division.

  Nominal exchange rate

If the nominal exchange rate were 1.2 Canadian dollars per U. S. dollar, illustrate what would be the real exchange rate.

  Enrollment in colleges also universities increases

why the enrollment in colleges also universities increases at times of economic recession

  Business of manufacturing dolls

The trade or business of manufacturing dolls and accessories

  Sales of pollution rights or certificates

Would the sales of pollution rights or certificates be an efficient means of allocating a given amount of pollution.

  Assume your town decides to levy a tax to raise funds

Assume your town decides to levy a tax to raise funds for construction, maintenance also other expenses for local schools. Should the tax be proportional, progressive or regressive.

  Payoff matrix of economic profits

The payoff matrix of economic profits above displays the possible outcomes for Bob and Jane who are involved in game of whether or not to advertise.

  Institutional arrangements is most likely to promote growth

Which of the following institutional arrangements is most likely to promote growth.

  What is the impact on the long run adjustment

What is the impact on the long run adjustment due to this condition. First, look at the impact of the market and then the single firm. What does it do to economic profits or losses, then what happens in the market.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd