Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Chyenne runs a small pottery firm. She hires one helper at $15,000 per year, pays annual rent of $$800 for her shop, and spends $24,500
Chyenne runs a small pottery firm. She hires one helper at $15,000 per year, pays annual rent of $$800 for her shop, and spends $24,500 per year on materials. She has 542.000 of hIs own funds invested in equipment (pottery wheels, kilns, and so forth) that could earn her $4500 per year if alternatively invested. She has been offered $18,500 per year to work as a potter for a competitor. She estimates her entrepreneurial talents are worth $3500 per year. Total annual revenue from pottery sales is $75,000 Calculate the accounting profit and the economic profit for Chyenne's pottery firm. Show work and/or describe how you determined your answers. Calculate the Economic Profit for Chyenne's pottery firm
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started