Managerial Economics & Business Strategy (Mcgraw-hill Series Economics)
9th Edition
ISBN: 9781259290619
Author: Michael Baye, Jeff Prince
Publisher: McGraw-Hill Education
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Chapter 6, Problem 17PAA
To determine
Way to restructure EFI sales force which increases profits.
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ophia has decided to start her own business. In doing so she refused an offer to work at the Central Bank which would pay a salary of $200,000 annually. Last year she earned a total revenue of $150,000. Rent and utilities last year were $60,000. Her assistantʹs salary is $50,000 annually. Her total explicit and implicit costs are
Consider the following example:
Jordan currently works for a corporate law firm. She is considering opening her own independent legal practice, where she expects to earn
$300,000 per year once she gets established. To run her own firm, she willI have to give up her current job with a salary of $165,000 and will incur
the following annual expenses:
Rent
22,490
Salary-Legal Assistant
Computer Software License
Office Supplies
21,830
120
800
Internet Subscription
1,750
How much are Jordan's explicit costs?
Number
How much is Jordan's accounting profit? Number
How much are Jordan's implicit costs? Number
How much is Jordan's economic profit? Number
Assume Jordan values her leisure time at $80/hour, and starting her own firm would require her to put in 15 more hours than at the corporate firm:
What is the change in Jordan's explicit costs? Number
What is the change in Jordan's implicit costs? Number
Assume you are selling pizzas at $3 per pizza Your fixed costs (rent, salaries, and
utilities) are $3,633/month. The food costs and other variable costs are 50
percent of the selling price. What is your break-even point in units sold? (enter
only the value)
Chapter 6 Solutions
Managerial Economics & Business Strategy (Mcgraw-hill Series Economics)
Ch. 6 - Prob. 1CACQCh. 6 - Prob. 2CACQCh. 6 - Prob. 3CACQCh. 6 - Prob. 4CACQCh. 6 - Prob. 5CACQCh. 6 - Prob. 6CACQCh. 6 - Prob. 7CACQCh. 6 - Prob. 8CACQCh. 6 - Prob. 9CACQCh. 6 - Prob. 10CACQ
Ch. 6 - Prob. 11PAACh. 6 - DonutVille caters to its retirement population by...Ch. 6 - Prob. 13PAACh. 6 - Prob. 14PAACh. 6 - Prob. 15PAACh. 6 - Prob. 16PAACh. 6 - Prob. 17PAACh. 6 - Prob. 18PAACh. 6 - Prob. 19PAACh. 6 - Prob. 20PAACh. 6 - Prob. 21PAACh. 6 - Prob. 22PAACh. 6 - Prob. 23PAACh. 6 - Prob. 24PAACh. 6 - Prob. 25PAACh. 6 - Prob. 26PAACh. 6 - Prob. 27PAA
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