User Account

All Pages

Positive accounting profits

Assignment Help Macroeconomics
Reference no: EM131178278

1. Jamie is considering leaving her current job, which pays $75,000 per year, to start a new company that develops applications for smart phones. Based on market research, she can sell about 50,000 units during the first year at a price of $4 per unit. With an annual overhead costs and operating expenses amounting to $145000. Jamie expects a profit of 20 percent. This margin is 5 percent larger than of her largest competitors, Apps. Inc.

a. If Jamie decides to embark on her new venture, what will her accounting cost be during the first year of operat16ion? Her implicit costs? Her opportunity cost?

b. Suppose that Jamie's estimated selling price is lower than originally projected during the first year. How much revenue would she need in order to earn positive accounting profits? positive economic profit?

Reference no: EM131178278

Questions Cloud

Discuss the effect on the assessable income of the parent : HA3042 TAXATION LAW - Discuss whether or not the three payments are income from personal exertion. Would your answer differ if she wrote the story for her own satisfaction and only decided to sell it later?
Evaluate quality of accounting information for organization : Evaluate the quality of accounting information for an organization, including the economic content and earnings sustainability. Use technology and information resources to research issues in financial analysis and reporting.
Calculate the annualised return on investment : Calculate the annualised Return on Investment achieved by each of the process divisions during April 2010. - Discuss the suitability of this performance measure in the context of the data provided for each process division.
Identify at least five books and multimedia materials : Describe insights you have gained about what it means to be an early childhood professional. Explain how those insights can make you a stronger professional in the future and help you to benefit young children and families with whom you may work.
Positive accounting profits : Suppose that Jamie's estimated selling price is lower than originally projected during the first year. How much revenue would she need in order to earn positive accounting profits? positive economic profit?
Compute net present value of project : The Acu Punct Corporation is considering the purchase of a new machine with an initial outlay of $4,500 and expected cash flows in years 1-4 of $2,200. The certainty equivalent coefficient for each period is 0.87. The appropriate discount rate for th..
Describe the initial set-up of the market : (a) Describe the initial set-up of the market;  (b) Analyse the effects of the local policy on the market in the short-run;
What is the net present value of selecting new machine : Pan bottling co is considering purchasing a new machine to increase the speed of bottling and save money. The net cost of the machine is $60,000. If the cost of capital is 13%, what is the net present value of selecting a new machine? What is the int..
Decision will affect the value of the firm : Suppose that the manager of a firm, that uses coal energy, decides to install new equipment that will reduce air pollution like acid rain. Explain how this decision will affect the value of the firm.

Reviews

Write a Review

Macroeconomics Questions & Answers

  1 corporate or organizational culture what is it how would

1. corporate or organizational culture what is it? how would you describe corporate culture? is it a positive or

  Elucidate how education- research and development

Elucidate how education, research and development, and technology affect productivity.

  Monetary policy prescription to reduce deflation

Discuss some of the damaging effects deflation has on an economy and what would be a monetary policy prescription to decrease or eliminate deflation?

  Discuss the differences among commodity money and fiat money

Discuss the differences among commodity money and fiat money, making sure to explain what makes fiat money work.

  Policies implemented the eus principles of flexicurity

Explain how Germany OR Denmark has sought to have both some elements of security and flexibility in their labour markets. How far have these policies implemented the EUs principles of flexicurity?

  Calculating the nation real gdp

"The Commerce department announced that it is shifting from 1987 to 1992 as the base year for calculating the nation's real GDP and price index."

  Production function is the following

Suppose XYZ Corporation has a technology that uses only labor (L) and the production function is the following: one unit of labor will produce one unit of output (x), i.e., x=L. Also suppose that the firm can buy as much labor as it would ever wan..

  Define herfindahl index

where si is the market shares of the i-th firm in the industry. The Herfindahl index for A is 100. The Herfindahl index for A is 3,800. The Herfindahl index for B is 3,600 The Herfindahl index for A is greater than for B. The Herfindahl index is ..

  Helpful in preparing tables

You can use any available on- or off-campus library services for your research. Software that will be helpful in preparing tables, graphs, and charts includes Excel, SPSS, and other similar data-collection software applications.

  What would have happened had spain retained its old currency

Which country suffered the greater fall in aggregate demand, Finland, which does not compete directly with China in its export markets, or Spain, which does? What would have happened had Spain retained its old currency, the peseta?

  Suppose the us is in the midst of a recession

Suppose the U.S. is in the midst of a recession and a new president has just inherited an already large public debt.

  Maturity extension program and reinvestment policyunder the

maturity extension program and reinvestment policyunder the maturity extension program the federal reserve sold or

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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