What was the annual accounting profit for the company

Assignment Help Business Economics

Reference no: EM13238392

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.

What was the annual accounting profit for this company?

Reference no: EM13238392

Questions Cloud

Explain the columns change and revised equilibrium : The biggest problem I'm running into is how to complete the ICE chart for the columns Change and Revised Equilibrium. I don't know where those numbers come from.

Find the speed of the raft : A woman on a bridge 104 m high sees a raft floating at a constant speed on the river below, She drops a stone from rest in an attempt to hit the raft, Find the speed of the raft

What are the opportunity costs for the manager : 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

How much time the man have to get out of the way : A cement block accidentally falls from rest from the ledge of a 82.4 -m-high building, How much time, at most, does the man have to get out of the way

What was the annual accounting profit for the company : 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

Explain the nernst equation to calculate the cd2+ : Use the Nernst equation to calculate the Cd2+ concentration when given cell potential of +0.768V and Mn2+ concentration of .500M

What does affect a firms efforts to maximize profits : In spite of the fact that firms do not make payments on resources they own, these resources still have an opportunity cost. How is this possible, and how does this affect a firm's efforts to maximize profits

Calculate blast speed at launch : A dynamite blast at a quarry launches a rock straight upward, and 2.3 s later it is rising at a rate of 18 m/s, calculate blast speed at launch

Which would lead to the greatest increase in social welfare : The four-firm concentration ratios for industries X and Y are 89 percent and 62 percent, respectively, while the corresponding Herfindahl-Hirschman indexes are 2,600 and 1,200. The Dansby-Willig performance index for industry X is 0.6

User Account

All Pages