Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You run a small manufacturing shop which produces fishing rods. Below are some facts relating to your operation: The business produced and sold 3,000

image text in transcribed 

You run a small manufacturing shop which produces fishing rods. Below are some facts relating to your operation: The business produced and sold 3,000 fishing rods for the year. The sales price was $50.00 for each fishing rod. The business was billed and it paid $20.00 per fishing rod for material and labor to build the fishing rods. The business was billed and it paid $25,000 in rent for the building where you assemble the fishing rods. .The business borrowed $100,000 from the bank. The bank billed the business and it paid interest at 6% a year. The business also borrowed $300,000 from you the owner of the business. You did not bill the business for any interest on the loan. The owner could have earned 5% interest for the year had you invested it somewhere else. The owner was not paid a salary from the business. The owner could have earned $80,000 had you worked for someone else. Question: What was the total revenue for your business?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To calculate the total revenue for your business you need to multiply the ... 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_2

Step: 3

blur-text-image_3

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

Modern Principles of Economics

Authors: Tyler Cowen, Alex Tabarrok

3rd edition

1429278390, 978-1429278416, 1429278412, 978-1429278393

More Books

Students also viewed these Finance questions

Question

=+22. Energy investment decisions.

Answered: 1 week ago