1 Refer To The Table Below To Answer The Questions The Table Shows The Monthly Economic Profit Of A Drugstore Total 1 (52.31 KiB) Viewed 10 times
1 Refer To The Table Below To Answer The Questions The Table Shows The Monthly Economic Profit Of A Drugstore Total 2 (34.12 KiB) Viewed 10 times
1- Refer to the table below to answer the questions. The table shows the monthly economic profit of a drugstore. Total (gross) revenues per month less explicit costs: Cost of merchandise sold Wages to cashier, stock, and delivery help Rent and utilities Wages of owner-manager, 300 hours @ $10 per hour Taxes Total explicit costs $21,000 Accounting profit (revenue minus explicit costs) $6,000 less implicit costs: Return on inventory investment, 10% per year on $120,000 $27,000 Total implicit costs Economic profit (revenue minus all costs) $17,000 2,500 800 700 $3,000 1,000 $4,000 $2,000 Please enter your responses as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. If the owner of the drugstore hired a manager for $20 an hour to take his place, how much of a change would show up in: a. Accounting profits per month?
Please enter your responses as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. If the owner of the drugstore hired a manager for $20 an hour to take his place, how much of a change would show up in: a. Accounting profits per month? 1 b. What would the total monthly accounting profits be after the manager works for a month? $ c. How much of a change would show up in economic profits per month? $ d. What would the total monthly economic profits be after the manager works for a month? e. Is It a good business decision to hire the manager? yes or no
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