User Account

All Pages

What was the economic profit

Assignment Help Business Economics
Reference no: EM132479904

Maria was earning €100,000 a year working at a bank. She decided to start her own financial consultancy business. She used €500,000 in savings that earned 5% interest annually to finance the new business. In the first year, the firm earned revenue of €1,500,000. The costs for rent, supplies, and payroll were €1,100,000. What was the accounting profit for the new business? What was the economic profit (or loss)? What does the economic profit (or loss) imply? Explain your calculations for both questions.

Reference no: EM132479904

Questions Cloud

Determine the amount of total assets and total liabilities : Based on the following data, determine the amount of total assets, total liabilities, and net worth. Liquid assets $4,370, Investment assets $8,840
Difference between journal entries in process costing : Identify the main difference between journal entries in process costing and job costing and Transferred-in costs are those costs incurred in the preceding
Marginal costs for customer load level : Suppose your company runs a shuttle business of a hotel to and from the local airport. The costs for different customer loads are:
Why is marketing different in other countries : Why is marketing different in other countries of the world?
What was the economic profit : What was the economic profit (or loss)? What does the economic profit (or loss) imply? Explain your calculations for both questions.
Journalize the transactions in a general journal : Feb. 10 Sold merchandise for $1,600 on account to Bushard Company, Invoice 1980, terms 3/10, n/30. Journalize the transactions in a general journal
Prepare the adjusting entry for doubtful accounts expense : Prepare the adjusting entry for doubtful accounts expense under each of the 4 PERCENT OF CURRENT RECEIVABLE ARE UNCOLLECTIBLE.
Comment on the planned price changes : 1. Comment on the planned price changes and its impact on quantity demanded. 2. Count the change in total revenues
Total cost of building a stage : These are merely alternative levels or stages between which to choose. That is, Stage 2 includes everything in Stage 1, but the total cost of building a Stage 2

Reviews

Write a Review

Business Economics Questions & Answers

  Find the effective interest rate-excellent interest rate

A brochure reads, “Excellent interest rate of 12%.” Find the effective interest rate if compounding occurs quarterly, monthly, weekly, daily and continuously?

  Interest income from tax-exempt bonds

Susan and Stan Collins live in Iowa, are married and have two children ages 6 and 10. In 2014, Susan adjusted gross income is $38,000 and Stan is $12,000 and both are self-employed. They also have $500 in interest income from tax-exempt bonds. The Co..

  Championing the cause of free trade

Why is it that some economists are suspicious that some of those who claim they are for 'free trade, but fair trade'.

  Total explicit and total implicit and total economic costs

At the beginning of the year, an audio engineer quit his job and gave up a salary of $ 175,000 per year in order to start his own business, Sound Devices, Inc. What are the total explicit, total implicit, and total economic costs in 2011? What is acc..

  Smooth out the business cycle

Discuss whether or not the Fed should use its policy tools to smooth out the business cycle (reducing output during economic expansion and increasing output

  Example what is meant by the screening hypothesis

Briefly explain with the help on an example what is meant by the Screening Hypothesis. Using examples, briefly describe the various types of discrimination present in an economy?

  How would this affect bottlenecks and rush-hour congestion

Technology is now being developed so that road use can be priced by computer. A computer in the surface of the road picks up a signal from your car and automatically charges you for the use of the road. How would this affect bottlenecks and rush-hour..

  What are the four supply factors of economic growth

What are the four supply factors of economic growth? What is the demand factor? What is the efficiency factor? Illustrate these factors in terms of the production possibilities curve. What are the four supply factors of economic growth? What is the d..

  Future value of these deposits right after your last deposit

You make monthly deposits of $1,000 in a bank starting at the end of month 1 and lasting 5 years (the last deposit is at the end of month 60). What is the future value of these deposits right after your last deposit? Assume the nominal annual interes..

  Impact on the la line in the economy

If there is a decline in unionisation in the economy which leads to a decrease in the number of signed wage contracts and a decrease in the length of a standard

  Calculate the total owners equity at the end of the year

Based on only these account balances, calculate the total owners equity at the end of the year. ( (Answer in whole $s without the $ sign or comma, xxxxx, e.g. 1

  What is the actuarially-fair premium

A group of individuals each face a 1% probability of suffering a loss of $10,000, a 4% probability of suffering a $1,000 loss, a 20% probability of suffering a

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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