Last year, Jarod left a job that pays $60,000 to run his own bike repair shop. Jarod's shop charges $65 for a repair, and last year the shop performed 4,000 repalrs, Jarod's production costs for the year included rent, wages, and equipment. Jarod spent $50,000 on rent and $120,000 on wages for his employees. Jarod keeps whatever profit the shop earns but does not pay himself an official wage Jarod used $25,000 of his savings to buy a machine for the business. His savings were earning an annual interest rate of 6 percent. Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in tront of those numbers. a. What is Jarod's annual accounting profit? $ 88500 O b-What is Jarod's annual economic profit? $ 28500 O

Last year, Jarod left a job that pays $60,000 to run his own bike repair shop. Jarod's shop charges $65 for a repair, and last year the shop performed 4,000 repalrs, Jarod's production costs for the year included rent, wages, and equipment. Jarod spent $50,000 on rent and $120,000 on wages for his employees. Jarod keeps whatever profit the shop earns but does not pay himself an official wage Jarod used $25,000 of his savings to buy a machine for the business. His savings were earning an annual interest rate of 6 percent. Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in tront of those numbers. a. What is Jarod's annual accounting profit? $ 88500 O b-What is Jarod's annual economic profit? $ 28500 O

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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