Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Selina is offered a job with a salary of $80,000, which she turns down to start her own business. She uses $30,000 of her own

Selina is offered a job with a salary of $80,000, which she turns down to start her own business. She uses $30,000 of her own savings to purchase capital, savings that had been earning $1,000 per year in interest. Over her first year in business, Selina collects total revenue of $190,000 and must cover explicit costs of $105,000. During her first year in business, Selina's accounting profit is _____, and her economic profit is _____. Assume that there is no capital depreciation. Question 5 options: $85,000; $4,000 $85,000; -$26,000 $110,000; -$26,000 $110,000; $4,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Survey of Accounting

Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor Yi

3rd Edition

978-1259683794, 77490835, 1259683796, 9780077490836, 978-0078110856

More Books

Students also viewed these Accounting questions

Question

Explain the Hawthorne effect.

Answered: 1 week ago

Question

17. Verify that the gamma density function integrates to 1.

Answered: 1 week ago