Question
Consider the revenues and costs in 2019 for Spruce Decor Inc., an Alberta-based furniture company entirely owned by Mr. Harold Buford Furniture Sales Catalogue
Consider the revenues and costs in 2019 for Spruce Decor Inc., an Alberta-based furniture company entirely owned by Mr. Harold Buford Furniture Sales Catalogue Sales Labour Costs Materials Costs Advertising Costs Debt Service Costs $655,000 $12,000 $345,000 $153,000 $26,000 $32,000 a. What would accountants determine Spruce Decor's profits to be in 2019? Spruce Decor's profits in 2019 equal $111000 b. Suppose Mr. Buford has $425,000 of capital invested in Spruce Decor Also suppose that equally risky enterprises earn a 16 percent rate of return on capital. What is the opportunity cost for Mr. Buford's capital? The opportunity cost for Mr. Buford's capital is $ Inco
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