Suppose Winston's annual salary as an accountant is $60,000, and his financial assets generate $4,000 per year in interest. One day, after deciding to be his own boss, he quits his job and uses his financial assets to establish a consulting business, which he runs out of his home. To run the business, he outlays $8,000 in cash to cover all the costs involved with running the business, and earns revenues of $150,000. What are Winston's accounting profits?
A. $78,000
B. $142,000
C. $138,000
D. $150,000
B. $142,000
You might also like to view...
All of the following are cited as potential explanations for the decrease in demand for Kleenex-brand facial tissues except:
A) consumers switching to substitute products. B) market entry by lower-priced private brands. C) the failure of the producer of Kleenex tissues to develop any new and innovative products.
Refer to the table below. If Fresh Laundry is currently producing 10 quality units, to maximize profit, Fresh Laundry should ________ the number of quality units as the current quality marginal revenue is ________ its marginal cost.
Fresh Laundry is a firm that produces laundry detergent. The table above summarizes Fresh Laundry's product quality marginal revenue and marginal cost at various quality levels.
A) decrease; equal to
B) decrease; less than
C) maintain; less than
D) maintain; equal to
After the major income tax decrease for the high income earners in 1981, the federal deficit _______ by 1990.
A. had not changed B. tripled C. cut by half D. doubled
A schedule of how much of a good people will purchase for a range of possible prices during a specified time period, other things constant, is the definition of
A. demand. B. supply. C. an economic market. D. a purchasing contract.