The market value of the equipment at the end

Assignment Help Microeconomics

Reference no: EM13498432

One year ago, Allen and Aimee opened a cheese firm (called ALAM). Use the following information to calculate ALAM's explicit costs and implicit costs during its first year of operation:

a.Allen and Aimee put $70,000 of their own money into the firm.

b.They bought equipment for $40,000.

c.They hired one employee (Josh) to help them for an annual wage of $18,000.

d.Allen gave up his previous job, at which he earned $22,000, and spent all his time working for ALAM.

e.Aimee kept her job, which paid $20 an hour, but gave up 20 hours of leisure each week (for 50 weeks) to work for ALAM.

f.ALAM bought $50,000 of goods from other firms.

g.The market value of the equipment at the end of the year was $37,000.

Reference no: EM13498432

Questions Cloud

What is the total energy contained in this system : A mass of 0.5 kg is attached to the end of a massless spring of spring constant 0.75 N/m. What is the total energy contained in this system

Compute the roi for both divisions : Explain why EVA® is considered a superior performance evaluation method in comparison to ROI and RI?

Define equilibrium constant for a certain reaction decreases : The equilibrium constant for a certain reaction decreases from 8.91 to 3.5 10-2 when the temperature increases from 29°C to 73°C. Estimate the temperature where K = 1.00 for this reaction.

Explain what mass of sucrose should be combined : What mass of sucrose should be combined with 454 g of water to make a solution with an osmotic pressure of 8.85 atm at 285 K

The market value of the equipment at the end : Allen and Aimee put $70,000 of their own money into the firm

Find the work done on the ball by the quarter back : When a quarterback throws a quick pass, he pushes on the ball with constant horizontal force for 0.10 sec, while his hand moves forward 0.80 m. find the work done on the ball by the quarter back

Define decentralisation and segment reporting : In addition to the expenses listed above, the company had $450,000 of common fixed expenses which it allocated to each division based on their percentage of total service revenue earned.

Determine molality of the solution prepared by dissolving : Find the molality of the solution prepared by dissolving 0.238 g camphor , C10H16O , in 15.5 g cyclohexane.

Determine the contribution margin : Explain why the transfer prices based on actual costs are not appropriate as the basis for divisional performance measurement.

User Account

All Pages