What were the profits attributable

Reference no: EM13188135

Joe Holiday operated a business renting beach umbrellas this past summer. He operated the concession for 3 months. Joe knew that rain was frequent along this stretch of beach, but he was luck and enjoyed 60 rentable days this season. On each rentable day Joe rented 40 umbrellas per day at $10 per rental. He ran the concession by himself, but had to pay Beachcomber Enterprises $10,000 for the concession (the use of the umbrellas and for the beachfront rental location). Suppose Joe could have earned $10,000 working construction.

a. What were Joe's Accounting Profits for undertaking the business? What were his Economic Profits?

Accounting profits (pA):___

Economic profits (pE):_____

Did Joe realize positive economic profits from the venture? If so, to what were these profits attributable?

Positive economic profits? ( Y / N )

Justification: ____

Reference no: EM13188135

Questions Cloud

Create java servlets : Create a new JSON "view" (e.g., a JSP page that only displays the JSON representation of the data)

Define what is the molarity of sulfuric acid in the solution : What is the molarity of sulfuric acid in the solution? How long (in seconds) would it take to fill a 55 gallon drum, and how much sulfuric acid (lb_m) would the drum contain? (use two dimensional equations)?

What is the projected net income : Calculating Projected Net Income. A proposed new investment has projected sales of $825,000. Variable costs are 55 percent of sales, and fixed costs are $187,150; depreciation is $91,000. Prepare a pro forma income statement assuming a tax rate of..

Find the dimensions of the building : Suppose the walls cost twice as much per m2 as the ceiling, and suppose the floor (i.e.base) costs nothing. Find the dimensions of the building that would minimize the cost.

What were the profits attributable : Joe Holiday operated a business renting beach umbrellas this past summer. He operated the concession for 3 months. Joe knew that rain was frequent along this stretch of beach, but he was luck and enjoyed 60 rentable days this season. On each renta..

Use the empirical rule : Use the Empirical Rule to find what two values 99.7% of the data will fall between for a data set with a mean of 287 and standard deviation of 14.

Methodology to develop software applications : What needs to be considered in devising a company's policy for selecting a methodology to develop software applications?

State transition metal complex with the formula : Five potential structures belonging to point groups Oh,D3h,D6h,D2h and D3d. Sketch geometries that are consistent with the possible point groups?

Find what is the minimum sales price : Fred Smith owns a British Consul, a security which pays the equivalent of $1000 U.S. each year on September 15, forever. Fred has recently considered selling the security. The current interest rate is 10% a. What is the minimum sales price he must..

User Account

All Pages