1. The following table presents some data from I.M. Farmer's income statement. Use theinformation to compute values for each of the items listed below.+Total revenueNet farm incomeAverage net worthAverage asset valueInterest expensea. Rate of Rate of return on assetsb. Rate of return on equity_C. Return to family labor_$120,000 Total operating expenses$36,000Opportunity cost of labor$180,000 opportunity cost of management$360,000 Opportunity cost of capital$12,000d. Return to management_%%e. Assess the profitability of I.M. Farmer's business, and explain your answer.$72,000$20,000$5,00012%

Rate of return on assets:-The company profitability in relation to its total assets is determined by…

1. The following table presents some data from I.M. Farmer's income statement. Use the information to compute values for each of the items listed below. Total revenue Net farm income Average net worth Average asset value Interest expense $120,000 Total operating expenses $36,000 Opportunity cost of labor $180,000 opportunity cost of management $360,000 Opportunity cost of capital $12,000 a. Rate of Rate of return on assets b. Rate of return on equity_ % % $72,000 $20,000 $5,000 12% 0

1. The following table presents some data from I.M. Farmer's income statement. Use the information to compute values for each of the items listed below. Total revenue Net farm income Average net worth Average asset value Interest expense $120,000 Total operating expenses $36,000 Opportunity cost of labor $180,000 opportunity cost of management $360,000 Opportunity cost of capital $12,000 a. Rate of Rate of return on assets b. Rate of return on equity_ % % $72,000 $20,000 $5,000 12% 0

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter13: Factor Markets: With Emphasis On The Labor Market

Section13.1: Factor Market

Problem 2ST

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