1. You decide to start your own martial arts studio. You quit your $3,000 per month job, and earn $4,500 per month in total revenue. To operate, it costs you... $2,500 per month to rent the building (in a lease contract) $500 per month in business licensing and regulatory fees (you must pay these for the year, even if you close down) $1,000 per month in staff wages (at-will; can let go of employees at any time) $100 per month in cleaning supplies What is your monthly accounting profit? What is your monthly economic profit? What is your average fixed cost per student if you have 6 students? What is the yearly total for variable costs? Which of the costs was an implicit cost?

1. You decide to start your own martial arts studio. You quit your $3,000 per month job, and earn $4,500 per month in total revenue. To operate, it costs you... $2,500 per month to rent the building (in a lease contract) $500 per month in business licensing and regulatory fees (you must pay these for the year, even if you close down) $1,000 per month in staff wages (at-will; can let go of employees at any time) $100 per month in cleaning supplies What is your monthly accounting profit? What is your monthly economic profit? What is your average fixed cost per student if you have 6 students? What is the yearly total for variable costs? Which of the costs was an implicit cost?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter22: Providing And Obtaining Credit

Section: Chapter Questions

Problem 9MC: Now assume that it is several years later. The brothers are concerned about the firm’s current...

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You decide to start your own martial arts studio. You quit your $3,000 per month job, and earn $4,500 per month in total revenue. To operate, it costs you... $2,500 per month to rent the building (in a lease contract) $500 per month in business licensing and regulatory fees (you must pay these for the year, even if you close down) $1,000 per month in staff wages (at-will; can let go of employees at any time) $100 per month in cleaning supplies
Suppose, you start your own business which is a pet store. The total cost of purchasing supplies and hiring labor is $50,000 per year. To run the pet store, you quit your job that pays $45,000 per year and use the building that you already own (a building like yours rents out for $60,000 per year). Also, your car payment is $24,000 per year (you may use your car for the business sometimes). What is the total opportunity cost of opening up a pet store for a year?
You're a graduate and the company that hires you offers a job that includes a paid apartment in Austin. You only need to pay for services and maintenance. You go ahead and make calculations and come up that each year you need to pay $36,000 to cover all expenses. Each year it sums up to $36,500 and every consequent year increasing by $500 through year 10. At an interest rate of 10% per year, the present worth of the maintenance costs are going to be how much?
Consider the following scenario in relation to your Notary, Loan Signing Agent and Marriage officiant practice in Hawaii and determine the opportunity cost of leaving your job to become an entrepreneur. You currently make $90,000 per year at your job plus benefits (equal to 30% of your salary). On January 1 of the New Year, you start your own business. After the first year, your accountant informs you that you made $45,000 and out of that you paid $6,000 for health insurance. What was your opportunity cost? If your opportunity cost is higher than you would like, how can you lower your opportunity cost in the future years?
The median annual income for someone with an Associates Degree is $31,936. The median annual income for someone with a Bachelor's Degree is $45,221. Suppose you have an associate's degree. If you quit your job and go back to school to study two years for a bachelor's degree, it will cost you $55,000 in tuition and fees plus approximately $64,000 in lost earnings. After graduation, how long will it take you to earn back that money?
The minimum wage in Mississippi of $725 per hour and you work 50 weeks a year, 40 hours each week. How much will you get in gross wages for that whole entire year of working full time all but 2 weeks (off for travel, sickness, holidays, and vacation)? a. about $45,000 b. about $14,500 c. about $16,500 d. about $30,000 e. about $25,000
In the upcoming year, the income from your current job will be $50,000. There is a 0.5 chance that you will keep your job and earn this income, and 0.2 chance that you will get a rise and earn 75,000. However, there is 0.3 chance that you will be laid off, putting you out of work for a time and forcing you to accept a lower paying job. In this case, your income is $25.000. The expected value of your income is thus $47,500.a) If your utility function has the formula 500I - 0.0002I2, determine the risk premium associated with this lottery.b) Provide an interpretation of the risk premium in this particular example.
John got a new job through Island Recruiting Company.The job pays $55K per year, and the agency fee is equal to 30% of 1 month’s pay.How much must the employer pay the agency?
Assume that a carpenter borrowed $2,000 to be paid offin a year to finance a machine that would make him workfaster. As a result, she is able to take on more projects andcollect $400 more earnings in the first year, after paying offthe principal of $2,000. However, there is a 15% rental fee(interest) on her loan, which she also has to pay off. Whatis the carpenter’s net earnings for the first year? (Roundyour response to the nearest dollar.)
You are currently in a job as a chef in a restaurant earning $100,000 per year. You are considering opening up a restaurant in a building which you currently own. You estimate that, if you wanted to, you could rent out your building for $25,000 per year to another restaurant. Last year, your revenues and expenses from the restaurant were the following: Revenues $400,000Cost of Food $120,000Salaries/Wages $100,000Utilities $25,000Taxes $20,000 What is your accounting profit? Show your calculations What is your economic profit? Show your calculations Assuming that you are indifferent between being a chef or owning a restaurant, should you open up your restaurant? Explain why. Now suppose that instead of owning the building where your restaurant will be located, you had to pay rent of $25,000 per year for the building. Will your answers to parts 1-3 change? Show your calculations. Explain how and why your answers will change or…
Say a student leaves her job for a year to attend college. The job pays 20,000 a year. After returning to work with the extra training her wage increases by 20% and she stays employed for 10 years and wages remain unchanged. The cost of the course was 500 and the discount rate is 5% per year. What is the net present value of the extra income the student will earn from going to college over her lifetime? -10,000 10,387 9,456 8,765 5%
ASAP 1)Claire wants to start her own dog treat business. She can purchase a suitable factory for $250,000. Claire currently has $135,000 in the bank earning 6 percent interest per year. Suppose Claire purchases the factory using her own money and then borrows the rest from the bank at 6%. Claire also has to pay other costs of running her business in the amount of $15420 per month. These costs include paying for energy, heat and salary and benefits to workers. (The value of the business is not considered a cost. The business is an asset that retains its value and can be sold if the owner wishes.) a. What is Claire’s annual implicit cost of purchasing the factory? b. What is Claire’s annual explicit cost of purchasing the factory? c. If Claire brings in annual total revenue of $300,000 what is her annual economic profit?