Last year, Jarod left a job that pays $80,000 to run his own bike-repair shop. Jarod’s shop charges $65 for a repair, and last year the shop performed 4,000 repairs. Jarod’s production costs for the year included rent, wages, and equipment. Jarod spent $60,000 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. 1. What is Jarod’s annual accounting profit? What is Jarod’s annual economic profit?

Use the table below to answer the next three questions. The below table displays the production schedule for Great Balls of Fire, a food truck that sells flaming meatballs. Great Balls of Fire has a lease on the truck itself that costs $1200 per week that must be paid whether or not the food truck produces and sells any meatballs. They may hire up to three workers to produce and sell the meatballs, workers cost $600 per week. The production schedule shows you how many meatballs would be produced with the varying levels of employees. Employees Meatballs Fixed Costs Variable Cost Total Cost Average Variab Cost 0 0 0 1 300 2 500 3 600 Completely fill out the table, please round all answers to the nearest cent. Do not enter any commas, dollar signs, or units (Ex. If your calculator says 12.376, just enter 12.38.) If your answer is an even dollar amount, you don't need to include the cents (Ex. you may enter 10 instead of 10.00)

QUESTION 16 Refer to Scenario 7.4 below to answer the question(s) that follow. SCENARIO 7.4: You own and are the only employee of a company that sells custom embroidered pet sweaters. Last year your total revenue was $120,000. Your costs for equipment, rent, and supplies were $30,000. To start this business you invested an amount of your own capital that could pay you a $50,000 a year return. Refer to Scenario 7.4. Your economic profit last year was -$20,000. $40,000. $70,000. $90,000.

Suppose your current job pays you $225,000 a year. However, you are considering starting your own company.  Based upon your research, you estimate your first-year total revenue to be $4,700,000.  There are however several costs of running the company during this first year, such as the cost of materials which will equal $1,300,000, employees who will receive in total $1,500,000, utilities which will cost $750,000, and rent that will be paid to the landlord that equals $1,000,000.  Based on this information,  solve for both your accounting profit and economic profit during this first year.  Also, based upon these profit values, state whether you are better off starting this company or staying in your current job.

Question 7 of 20 Total Total Average Average Average Fixed Variable Total Marginal Variable Fixed Cost $200 Output Total (Q) Cost Cost Cost Cost Cost Cost $0 $200 $200 $150 $350 40 $200 $250 $450 60 $200 $450 $650 80 $200 $800 $1,000 For the cost data shown above, what is this firm's Average Total Cost (ATC) when Output (Q) is 80? $12.50 $1,000 $11.25 O $10.83 20

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 $17,000 per month.   Instructions: Enter your answers as a whole number.   a. What are Barney’s monthly explicit costs?        $     b. What are Barney’s monthly implicit costs?        $     c. What are Barney’s monthly economic costs?        $

Suppose Nicholas owns a business making Christmas tree ornaments. Currently, he makes 300 ornaments a month. At this level of production, each additional ornament takes him 30 minutes to make and costs him $5 in materials. Nicholas makes his ornaments in a small studio that he rents for $300 a month. Nicholas can easily increase or decrease the amount of time he spends making ornaments, and he can easily go to the store to buy additional materials to make the ornaments, but he has a year-long lease on his studio, so he has to pay his monthly rent no matter how many ornaments he produces each month. Nicholas values his time at $10 per hour. Other than his time, the cost of the materials and the rent on his studio, Nicholas has no additional production costs. a At Nicholas's current level of production, what is the marginal cost of making an additional ornament each month? b. At Nicholas's current level of production, what is the monthly average fixed cost of each ornament? c. Assuming…

In 2011, Toni taught music and earned $20,000. She also earned $4,000 by renting out her basement. On January 1, 2012, she quit teaching, stopped renting out her basement, and began to use it as the office for her new Web site design business. She took $2,000 from her savings account to buy a computer. During 2012, she paid $1,500 for the lease of a Web server and $1,750 for high-speed Internet service. She received a total revenue from Web site designing of $45,000 and earned interest at 5 percent a year on her savings account balance. Normal profit is $55,000 a year. At the end of 2012, Toni could have sold her computer for $500. Calculate Toni's opportunity cost of production and her economic profit in 2012. 1.

Barney decides to quit his job as a corporate accountant, which pays $15,000 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 $60 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 $17,000 per month.   Instructions: Enter your answers as a whole number.   a. What are Barney’s average monthly accounting profits?        $     b. What are Barney’s average monthly economic profits?        $

Michael runs a small pottery firm. He hires one helper at $14,000 per year, pays annual rent of $8,000 for his shop, and spends $24,000 per year on materials. He has $50,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth) that could earn him $7,500 per year if alternatively invested. He has been offered $35,000 per year to work as a potter for a competitor. He estimates his entrepreneurial talents are worth $4,000 per year. Total annual revenue from pottery sales is $75,000. Michael's accounting profit is $. (Enter your response rounded to the nearest dollar and include a negative sign if necessary.)