Calculate the earnings of justin brimer operating

Assignment Help Accounting Basics
Reference no: EM131893039

Problem

Justin Brimer owns his own taxi, for which he bought a $31,000 permit to operate two years ago. Mr. Brimer earns $38,000 a year operating as an independent but has the opportunity to sell the taxi and permit for $84,000 and take a position as dispatcher for Carter Taxi Co. The dispatcher position pays $39,000 a year for a 37-hour week. Driving his own taxi, Mr. Brimer works approximately 50 hours per week. If he sells his business, he will invest the $84,000 and can earn a 15 percent return.

Required:

a. Determine the opportunity cost of owning and operating the independent business.

b-1. Calculate the earnings of Justin Brimer operating as an independent.

b-2. Calculate the earnings of Justin Brimer working as a dispatcher.

b-3. Based solely on financial considerations, should Mr. Brimer sell the taxi and accept the position as dispatcher? Yes No

Reference no: EM131893039

Questions Cloud

What is its wavelength of peak intensity : Consider a 50,000K object that emits thermal radiation. How much power does it emit from each square meter of its surface?
When production begins on the bag : What is the expected duration, in days, between when an order is received and when production begins on the bag ?
Energy of a 1-megaton hydrogen bomb : Compare the result to the energy of a 1-megaton hydrogen bomb. What effect would this have on your surroundings?
Why do national cultures differ : Why do you think many people are so frightened by globalization? Based on what is occurring in the world today, do you expect the globalization backlash.
Calculate the earnings of justin brimer operating : Calculate the earnings of Justin Brimer operating as an independent. Calculate the earnings of Justin Brimer working as a dispatcher.
Calculate the kinetic energy of any moving object : We can calculate the kinetic energy of any moving object with a very simple formula 1/2mv^2. A human metabolizing a candy bar
Why would people choose or not choose to carry this card : Explain what you think this means and how the system could be extended outside of public transport. What would some of the barriers to adoption be?
What is global climate change : What is global climate change? What is causing these changes to Earth climate?
Discuss motivational theories used to motivate employees : Think about your present workplace or a workplace with which you are familiar. Describe specifically and in detail how one of the motivational theories.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How do you prepare the operting activities section

how do you prepare the operting activities section of the statement of cash flows for Birdeye Corporation for the year eneded December 31, 2016

  How much is total overhead costs at this level of activity

Sheffield then prepared a flexible budget at 74000 labor hours. How much is total overhead costs at this level of activity

  Complete the master operating budgets for a company

For your Portfolio Project, you will complete the master operating budgets for a fictitious bottled water company on spreadsheet(s) in a workbook

  Prepare the journal entries necessary in the fund-based

Prepare the journal entries necessary in the fund-based and government-wide journals to record each of the following transactions

  Revenues and expenses recorded under gaap

When should revenues and expenses be recorded under GAAP? Are there other limitations tot he Traditional Income Statement format besides timing?

  Describe the business environment in the industry

Describe the business environment in the industry, and the business strategy chosen by your company and the competitor. Consider the degree of competition from existing competitors, potential entrants and substitute products.

  At the beginning of the year keller companys liabilities

at the beginning of the year keller companys liabilities equal 60000. during the year assets increase by 80000 and at

  Cost benefit considerations

Do you think that cost benefit considerations will be different in different countries? If so how would cost-benefit considerations be determined by a global accounting standard setter as the IASB?

  What portion of the dividend will be classified as u.s

What portion of the dividend will be classified as U.S.-source gross income

  Determine the present value of the lease payments

Determine the present value of the lease payments at September

  The store carries two portable sound systems

AudioMart is a retailer of radios, stereos, and televisions. The store carries two portable sound systems that have radios, CD players, and speakers

  Clark pierce conducts a wholesale merchandising business

Clark Pierce conducts a wholesale merchandising business that sells approximately 5,000 items per month with a total monthly average sales value of $250,000.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd