Scott used 4,000,000 from his savings account that paid an annual interest of 5 to purchase a hardware store. After one year, Scott sold the business for 4,100,000 . His accounting profits is:
a. 300,000
b. 100,000
c. 80,000
d. 20,000
QUESTION 2James used 250,000 from his savings account that paid an annual interest of 15 to purchase a hardware store. After one year, James sold the business for 320,000 . What is his accounting profit?
a. 320,000
b. 70,000
c. 282,500
d. 32,500
QUESTION 3A business owner makes 1000 items a day. Each day she spends 8 hours producing those items. If hired, elsewhere she could have earned 250 an hour. The item sells for 15 each. Production occurs seven days a week. If the explicit costs total 150,000 per month, what is her economic profit?
a. 300,000
b. 60,000
c. 450,000
d. 240,000
QUESTION 4Jane makes 1000 items a day. Each day she spends 8 hours producing those items. If hired elsewhere she could have earned 250 an hour. The item sells for 15 each. Production occurs seven days a week. If the explicit costs total 150,000 per month, what is her accounting profit?
a. 300,000
b. 60,000
c. 450,000
d. 240,000
QUESTION 5Total costs equal
a. Fixed costs
b. Variable costs
c. Sunk costs
d. Fixed costs plus variable costs
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