ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Barney decides to quit his job as a corporate accountant, which pays $12,000 a month, and goes into business for himself as a
certified public accountant.
He runs his business from his converted garage apartment, which he could rent out for $315 a month if he wasn't using it as a
home office. He must purchase office supplies worth $85 a month, and his monthly electricity bill has increased by $40 now that he is
working out of his home office.
After six months of working from home, Barney has earned an average of $14,000 per month.
Instructions: Enter your answers as a whole number.
a. What are Barney's average monthly accounting profits?
2$
b. What are Barney's average monthly economic profits?
%24
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Transcribed Image Text:Barney decides to quit his job as a corporate accountant, which pays $12,000 a month, and goes into business for himself as a certified public accountant. He runs his business from his converted garage apartment, which he could rent out for $315 a month if he wasn't using it as a home office. He must purchase office supplies worth $85 a month, and his monthly electricity bill has increased by $40 now that he is working out of his home office. After six months of working from home, Barney has earned an average of $14,000 per month. Instructions: Enter your answers as a whole number. a. What are Barney's average monthly accounting profits? 2$ b. What are Barney's average monthly economic profits? %24
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