Economic profit = Total revenue-(Explicit+implicit costs)
= 45028-(114248/12 + 16773)
= 45028-(9521+16773)
= 18734
Imran is a dairy farmer and currently has revenues of $45,028 per month. The only costs...
QUESTION 4 Imran is a dairy farmer and currently has revenues of $34,360 per month. The only costs associated with running the farm are fixed costs of $84,974 per year. As a result of a large shift in demand towards alternative forms of milk in the market Imran serves, he is deciding whether or not to start producing meat instead of milk. He estimates his revenues from producing meat will be $13,403 per month, with no fixed or variable costs....
David is a local barber who operates his own mobile barber business in the Canarsie area of Brooklyn. The total fixed costs for running the company car and David's wages are S3,200 per month. The price for a haircut is $18 with a variable cost of $6.75 per cut. In a typical month, David makes 365 cuts. Due to his success, other mobile barbers are entering the market with lower prices, so David is considering a 5% price reduction ....
Knowledge Check Eva pays $3.000 per month to rent her house. She has a garage but is considering turning the space into a halr styling studio. She expects to earn $3.000 a month from this new business. Instead, she could sublease the garage space to a neighbor for $800 per month. As part of the terms of sublease, her neighbor will pay an additional $100 per month for utilities. All other costs are unaffected. Eva is now analyzing the costs...
1. Emilio buys pizza for $10 and soda for $2. He has income of $100. His budget constraint will experience a parallel outward shift if which of the following events occur? a. The price of pizza falls to $5, the price of soda falls to $1, and his income falls to $50. b. The price of pizza rises to $20, the price of soda rises to $4, and his income remains the same. c. The price of pizza falls to...
c) The demand function for books in Pick n Pay is given by P quantity demanded and P is the price per book. 50-0.3Q, where Q is the i. Find the number of books that will be bought when the price is K2. ii. iii. Find the price elasticity of the demand when the number of books bought is 30. ] Calculate the percentage change in quantity demanded when the price increases by 10% (use the coefficient price elasticity of...
Sangria Topochico - The Capital Budgeting Decision In December 2012, María Guadalupe, the owner of Sidral Mundet Sol, had just finished reading a report done by his general manager, Francisco Javier, about the possible investment in a new product line, Sangria Topochico. The idea of Sangria Topochico came about three months earlier when María attended a seminar on youth obesity organized by a local high school that his two children attended. Even though he had often heard of the rising...
How can we assess whether a project is a success or a
failure?
This case presents two phases of a large business transformation project involving the implementation of an ERP system with the aim of creating an integrated company. The case illustrates some of the challenges associated with integration. It also presents the obstacles facing companies that undertake projects involving large information technology projects. Bombardier and Its Environment Joseph-Armand Bombardier was 15 years old when he built his first snowmobile...