What is glen accounting profit and economic profit

Reference no: EM13686279

Glen spends at least 40 hours a week at his place of business. If he closed the company, he could work for his competitor earning $50,000 a year. He also owns the building the company operates in and could rent it out for $12,000 a year if he closed his business. He invested $50,000 which he withdrew from CD account that generates five percent interest. The business records show the following

Wages expense $ 28,000.00

Interest expense paid on loans $ 6,000.00

Other expenditures for factors of production $ 34,000.00

Total Revenue $ 70,000.00

1. What is Glen Economic Profit?

2. What is Glen Accounting Profit?

Reference no: EM13686279

Questions Cloud

Identify the two variables in your research problem : Identify the two variables in your research problem

Market-oriented tradition associated with adam smith : How does the market-oriented tradition associated with Adam Smith differ from the active government tradition advocated by Alexander Hamilton?

What are ethnic projects in sociology : What are ethnic projects in sociology? What is the definition? And how are ethnic groups formed via ethnic boundaries? What are ethnic boundaries?

Gender are interactive systems rather than individual : Gender are interactive systems rather than individual variables

What is glen accounting profit and economic profit : Glen spends at least 40 hours a week at his place of business. If he closed the company, he could work for his competitor earning $50,000 a year. He also owns the building the company operates in and could rent it out for $12,000 a year if he closed ..

Potential disadvantages of being part of a large corporation : How do firms benefit from economies of scale? What might be some potential disadvantages of being part of a large corporation? Presume business is booming at your firm. It is contemplating adding more capital however the day supervisor suggests simpl..

Determine the color of the top of the rainbow : White light strikes a diffraction grating. A rainbow appears on a wall just below the direction of the horizontal incident beam. Determine the color of the top of the rainbow

Evaluate what is the speed of the proton : The kinetic energy of a proton is 80 percent of its total energy. Evaluate what is the speed of the proton

Find coefficient of friction between tabletop and object : An object of mass 15 grams is located against a 30 N/m spring horizontally on a tabletop. Find coefficient of friction between tabletop and object

User Account

All Pages