Question
5. nicole owns a small pottery factory. she can make 1,000 pieces of pottery per year and sell them for 100 each. it costs
5. nicole owns a small pottery factory. she can make 1,000 pieces of pottery per year and sell them for 100 each. it costs nicole 20,000 for the raw materials to produce the 1,000 pieces of pottery. she has invested 100,000 in her factory and equipment: 50,000 from her savings and 50,000 borrowed at 10 per cent. (assume that she could have loaned her money out at 10 per cent, too.) nicole can work at a competing pottery factory for 40,000 per year. the accounting profit at nicole's pottery factory is O 80000 O 75000 60000 O 55000
Step by Step Solution
3.44 Rating (157 Votes )
There are 3 Steps involved in it
Step: 1
The correct answer is A Nicole owns a small pottery factory She ...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 StartedRecommended Textbook for
Advanced Financial Accounting
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
10th edition
78025621, 978-0078025624
Students also viewed these Economics questions
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
Question
Answered: 1 week ago
View Answer in SolutionInn App