Consider the following example:Jordan currently works for a corporate law firm. She is considering opening her own independent legal practice, where she expects to earn$300,000 per year once she gets established. To run her own firm, she willI have to give up her current job with a salary of $165,000 and will incurthe following annual expenses:Rent22,490Salary-Legal AssistantComputer Software LicenseOffice Supplies21,830120800Internet Subscription1,750How much are Jordan's explicit costs?NumberHow much is Jordan's accounting profit? NumberHow much are Jordan's implicit costs? NumberHow much is Jordan's economic profit? NumberAssume Jordan values her leisure time at $80/hour, and starting her own firm would require her to put in 15 more hours than at the corporate firm:What is the change in Jordan's explicit costs? NumberWhat is the change in Jordan's implicit costs? Number

Note:- As per the honor code, we can only answer upto three subparts, we'll answer the first one.…

Answered: Consider the following example: Jordan…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Gomez runs a small pottery firm. He hires one helper at $12,000 per year, pays annual rent $5,000 for his shop, and spends $20,000 per year on materials. He has $40,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth) that could earn him interest rate 10% annually if alternatively invested. He has been offered $15,000 per year to work as a potter for competitor. Total annual revenue from pottery sales is $72,000. Calculate economic cost for Gomez pottery firm Only type answer and give answer fast
You are considering adding a new software title to those published by your highly successful software company. If you add the new product, it will use capacity on your disk duplicating machines that you had planned on using for your flagship product, "Battlin' Bobby." You had planned on using the unused capacity to start selling "BB" on the West coast in two years. You would eventually have had to purchase additional duplicating machines 10 years from today, but using the capacity for your new product will require moving this purchase up to 2 years from today. If the new machines will cost $115,000 and can be expensed under Section 179, your marginal tax rate is 21 percent, and your cost of capital is 16 percent, what is the opportunity cost associated with using the unused capacity for the new product? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) Opportunity cost
16. The following figures relate to one year work in a manufacturing business : Fixed overheads Variable overheads Direct wages Direct materials Sales 12,000 20,000 15,000 41,000 1,00,000 Represent each of the above figures on a break-even-chart, and determine from the chart the break-even point. [Ans. 50,000]
Give typing answer with explanation and conclusion
Store Local Shoe Store Different Neighborhood in Town Rural Outlet Travel Time Each Way (Minutes) 15 30 60 Store Local Shoe Store Price of a Boots (Dollars per boots) 114 95 Juanita earns an hourly wage of $16 at her job. In order to purchase her boots she will have to take time off work, so each hour away from her job costs her $16 in lost income. Assume that Juanita's travel time is the same each way (to and from the store) and that it will take her 30 minutes once she reaches a store to complete her shopping. Assume throughout the question that Juanita incurs no additional costs other than the boots, such as gas. Different Neighborhood in Town Rural Outlet 74 Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location. Opportunity Cost of Time (Dollars) Price of a Boots (Dollars per boots) 114 95 74 Total Cost (Dollars) Assume that Juanita considers both her opportunity costs and the price of boots when making her…
Mustansir is the owner of small pottery firm. He has hired one helper at Rs. 15,500/= per month,pays annual rent of 144,000/=, spends around 19,000/= on materials. He has 400,000/= of his ownfunds invested in equipment like pottery wheels, kilns and so forth that could lead him to earn50,000 per year if alternatively, invested. He was also offered by his competitor to work as a potter and earn 60,000/= per month. He estimated his entrepreneurial skills worth Rs. 53,000 per year.Although total annual revenue from the pottery sales is 9,650,000. Calculate the accounting andeconomic profit of Mustansir’s pottery firm and comment on the situation that whether he shouldcontinue doing the business or shut down.
A firm is technically insolvent when: Multiple Choice it files the legal forms petitioning for bankruptcy protection. it has a negative net worth on its balance sheet. the value of its stock declines by more than 50 percent in any given 12-month period. it is unable to meet its financial obligations. the value of the firm's assets is less than the value of the firm's liabilities.
Aoife has been working as a nurse in the local public hospital and earning an annual salary of €40,000. Due to increasing property prices, she decides to set up her own estate agency business. Aoife’s business expenses in the first year will include a €16,000 salary for a part-time administrator, €1,000 for various supplies, €3,000 in advertising and €5,000 to rent an office. For the rent, Aoife will use her own savings on which she was earning interest of 5% annually. Aoife is paid the difference between revenue and business expenses. Aoife’s implicit cost in the first year of setting up her own business is €16,000 €24,250 €40,000 €40,250 €75,000 What revenue would Aoife’s business have to earn in the first year in order for Aoife to be better off by €30,000relative to working as a nurse? €70,250 €95,250 €102,500 €55,000 €95,000
8
Assuming the maximum monthly CP retirement benefit payable at age 65 is approximately $1,150 and it of the following individuals have applied to receive a CP retirement benefit beginning this month, whose application will be DECLINED? O a) Nathalie is 61 years old and earns an annual salary of $38,000 from her full-time job. Nathalie wil resign from her position effective the end of this month O b) Justin is 64 years old and works on a part-time basis earning an annual salary of $12,000. Justin intends to continue his part-time employment for the foreseeable future c) Charlotte is 60 years old. On the ist of this month, she retired from the company for whom she worked full-time for 35 years Charlotte was earning an annual salary of $57,000. d) Nguyen is 58 years old. On the 15th of last month, he resigned from his full-time job from which he earned a salary of $85,000. However, his former company desperately needs Nguyen's skills so today. he accepted an offer from them to…
In a building construction project, 7,500 feet of insulated ductwork is required. The ductwork is made from 14-gauge steel costing $8.50 per pound. The 24-inch-diameter duct weighs 15 pounds per foot. Insulation for the ductwork costs $10 per foot. Engineering design will cost $16,000, and labor to install the ductwork will amount to $180,000. What is the cost of the 14-gauge steel? $956,250 $887,456 $1,200,000 $1,000,000

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