Bobby decides to sell lemonade on a hot summer day. If Bobby sells 25 glasses of lemonade for $5.00 per cup, and his average total cost is $4.40, what are Bobby's economic profits for the day

Answers

Answer 1

Answer:

$ 120.60

Explanation:

25 glasses * $ 5/ glass = 125 dollars gross income

income - expense = profit

125 - 4.40 = 120.60 profit

Answer 2

Economic profit refers to the total revenue earned by a business or an individual, minus all explicit and implicit costs incurred in the production of goods or services.

What are Bobby's economic profits for the day ?

Economic profit refers to the total revenue earned by a business or an individual, minus all explicit and implicit costs incurred in the production of goods or services.

Explicit costs include the expenses incurred by the business in purchasing or leasing inputs, such as labor, raw materials, and equipment. Implicit costs, on the other hand, refer to the opportunity cost of the resources used in production that could have been used for other purposes.

Economic profit is a measure of profitability that takes into account both explicit and implicit costs, and is therefore a more comprehensive measure than accounting profit. If economic profit is positive, the business is generating more value than it is sacrificing, and if it is negative, the business is not covering all its costs.

To calculate Bobby's economic profits, we need to subtract his total costs from his total revenue.

Total revenue = Price per cup x Number of cups sold

Total revenue = $5.00 x 25 cups

Total revenue = $125.00

Total costs = Average total cost per cup x Number of cups sold

Total costs = $4.40 x 25 cups

Total costs = $110.00

Therefore, Bobby's economic profits for the day would be:

Economic profits = Total revenue - Total costs

Economic profits = $125.00 - $110.00

Economic profits = $15.00

Bobby's economic profits for the day would be $15.00.

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Related Questions

A corporation issued 200 shares of its $5 par value common stock in payment of a $2,800 charge from its accountant for assistance in filing its charter with the state. The entry to record this transaction will include:

Answers

The journal entry records the transaction by debiting the corporate expense by $2,800 and crediting the common stock by $1,000 with the remaining amount transferred to additional capital as $1,800.

What is a journal entry?

Journal entry is passed in the accounting books to record the financial transactions made by a company. It shows a dual effect on every transaction where one account is debited and another account is credited.

The charge from the accountant is an expense for the company, that is, $2,800, the issue of common stock for payment is the equity of the company, that is, $1,000 and the excess amount left should be treated as additional capital in excess of par, that is, $1,800.

The journal entry is as follows:

Particulars                                       Debit Amount    Credit Amount

Corporate expenses                                 $2,800

   Common stock (200 shares X $5 )                                   $1,000

   Additional capital ($2,800-$1,000)                                    $1,800

Therefore, the journal entry is passed by making a debit of $2,800 to corporate expenses and a credit of $1,000 in common stock as well as $1,000 in additional capital.

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Assume the following for a company whose sales are all on account: The total asset turnover is 1.8. The average total assets is $600,000. The accounts receivable turnover is 9.00. The average accounts receivable balance is closest to:

Answers

The average accounts receivable balance is closest to $120,000.

What is the average accounts receivable balance?

The average accounts receivable balance is the addition of beginning and ending accounts receivable divided by two.

For instance, if the average accounts receivable balance is $120,000, then the total accounts receivable is $240,000 ($120,000 x 2).

Data and Calculations:

Assets turnover = 1.8

= (Net sales/Average Total Assets)

Average total assets = $600,000

Accounts receivable turnover = 9.00

= (Net Sales/Average Accounts Receivable)

Net sales = $1,080,000 ($600,000 x 1.8)

Average Accounts Receivable = $120,000 ($1,080,000/9)

Thus, the average accounts receivable balance is closest to $120,000.

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Drag each label to the correct category. the fictional country of kovasia decides to open its market to foreign businesses. what positive and negative effects will kovasia likely experience? the volume of exports will increase. people may lose jobs to outsourcing. goods and services may become less expensive. domestic products may become less popular.

Answers

The positive effect of market opening is that goods and services would be cheaper (option C), while the negative effect is that local products are consumed less (option D).

What is market opening?

Market opening is a term that refers to the action of a state to open its economy so that foreign companies send their products to that country.

The opening of the market is an economic activity that brings benefits and harm to the economy of a country because it diversifies the products that are on the market for citizens.

However, it has negative effects such as local products sometimes being the most expensive or losing popularity compared to imported ones, so people consume less of them.

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Answer:

Post Test: The Contemporary World

Explanation:

Positives:

The volume of exports will increase.

Goods and services may become less expensive.

Negatives:

People may lose jobs to outsourcing

Domestic products may become less popular.

Ben's Bookstore buys $500 worth of books on credit to sell in its retail store. When Ben records this transaction, how should he list this $500

Answers

Based on the fact that the books were bought on credit, to sell at Ben's Bookstore, the $500 should be listed separately as assets and liabilites.

How should Ben list the $500?

The $500 is a liability because Ben acquired the books on credit which means the store owes the supplies for them.

The $500 is also an asset however because it represents stock in the business which makes it a current asset.

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A major source of inefficiency in barter economies is that they require:.

Answers

A major source of inefficiency in barter economies is that they require a. a double coincidence of wants in exchange.

What are the causes of a barter system's inefficiency?

The barter system is 'inefficient' because a 'double coincidence of wants' is required. Bartering between two parties requires that both parties have what the other wants.

There is no standard unit of account/common measure of value.

Therefore, the Barter system is considered an 'inefficient' system.

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Ahmad Couture has bonds outstanding with a face value of $1,000, 11 years to maturity, and a coupon rate of 6 percent paid semiannually. What is the company's pretax cost of debt if the bonds currently sell for $1,067.12

Answers

Ahmad Couture pretax cost of debt if the bonds currently sell for $1,067.12 is 2.6%.

What is the pretax cost of debt?

A bond is a debt instrument used by businesses to raise capital needed for business operations.

The company's pretax cost of debt can be determined using a financial calculator:

Cash flow in year 0 = -1067.12Cash flow each year from period 1 to 22 = (6% / 2) x 10000 = $30 Cash flow at the end of period 22 = 1000 company's pretax cost of debt = 2.6%

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Jamal and keisha are considering entering into an agreement to trade tasks. how can specialization of labor benefit jamal and keisha? check all that apply. jamal can specialize in washing cars, because he has the comparative advantage. keisha can specialize in washing cars, because she has the comparative advantage. specialization allows them to collectively mow 3 more lawns and wash 3 more cars every three days. specialization allows them to collectively mow 12 more lawns and wash 27 more cars every three days. specialization allows them to earn more money.

Answers

The ways in which specialization of labor can benefit them would be: Keisha can specialize in washing cars because she has a comparative advantage.

What is Specialization of Labor?

Specialization of Labor is a division of labor that involves breaking down activities into a simpler set of tasks so that each participant participates hand in hand and no individual is being overworked, and to promote efficiency.

From the given information, the correct options are:

Keisha can specialize in washing cars because she has a comparative advantage.Specialization allows them to collectively mow 3 more lawns and wash 3 more cars every three days.Specialization allows them to earn more money.

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Answer:

B C E

Explanation:

The cost of assets consumed or services used is also known as:.

Answers

Answer:

It is called expense. that is the correct answer. Give me Brainiliest.

Which of the following ratios indicates how efficiently a company uses it assets to generate sales? Return on assets Asset turnover Sustainability Profit margin

Answers

The financial ratio that indicate how efficiently a company uses its asset to generate sales is the Return on assets.

What are profitability ratio?

Profitability ratio are financial ratios used to determine how efficiently a company uses it assets to generate sales. Profitability ratios include:

Gross profit margin Operating profit margin Pretax Margin Net profit Margin Return on asset Return on equity

Asset turnover is an example of activity ratio. Activity ratios determines the efficiency of performing daily task of a firm.

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Answer:Just took the quiz. It’s asset turnover

The net income for Mongan Co. for 2022 was $280,000. For 2022, depreciation on plant assets was $70,000, and the company incurred a loss on disposal of plant assets of $28,000. Compute net cash provided by operating activities under the indirect method, assuming there were no other changes in the company's accounts.

Answers

The amount of net cash is $3,78,000, and the cash flow statement is shown in the image given below.

What is cashflow statement?

A cash flow statement is also known as a statement of cash flows. It is a financial statement in financial accounting that demonstrates how changes in balance sheet accounts and income effect cash and cash equivalents, and divides the analysis into operating, investing, and financing activities.

Therefore, the cashflow statement of the given information is presented in the image below.

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FOB Destination requires that the supplier legally retain ownership of the product being shipped until it reaches the destination.
A. True
B. False

Answers

A. True


whereas with FOB origination the buyer takes ownership of the product immediately upon shipment.
true

why do new brands with a small market share tend to spend proportionately more for advertising and sales promotion than those with a large market share

Answers

The new brands with small market share are smaller and need to become more known and the ones with large market sales don’t need to well because their already a large company which means they are known and are doing well in sales

When organizing a business, some of the manager's main departments would include _____.


accounting
utilities
marketing
cleaning

Answers

When organizing a business, some of the manager's main departments would include marketing. As in organizing of the business marketing plays an  essential role.

What is organizing in business?

The process of identifying and organizing work to be done, defining and allocating responsibility and authority, and building relationships.

The purpose of allowing people to work together more effectively to achieve goals is known as organizing.

Thus, marketing is important in organizing.

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Using multiple cost drivers on a flexible budget report will generally ______.

Answers

When multiple drivers are used in a flexible budget report, this would generally increase accuracy.

What is the benefit of using multiple cost drivers?

When multiple cost drivers are used, there will be a better chance of capturing the various costs incurred by a business.

This makes the whole exercise of capturing costs in a budget much easier because it improves accuracy.

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Firms are more likely to effectively leverage their technologies in new markets if they identify new applications of the technology by identifying the ________ mode to generate ________ from ________ markets.

Answers

Firms are more likely to effectively leverage their technologies in new markets if they identify new applications of the technology by identifying the best mode to generate profits from new markets. best, profits, new the sentence.

What are Firms?

Generally, Firms are simply defined as the business as an essential component of any economic system in which individuals satisfy needs via the division of labor and the trade of products and services.

In conclusion, Firms are business-oriented organizations.

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A family of three living in georgia is thinking about filing bankruptcy. in order to file for chapter 7 bankruptcy, what must be true about their monthly income? a. the family's monthly income must be less than $5,092. b. the family's monthly income must be more than $5,092. c. the family's monthly income must be less than $4,605. d. the family's monthly income must be more than $4,605.

Answers

Answer: A. The family’s monthly income must be less than $5,092

Explanation: edge 2022

Technical name for a savings account is

Answers

Answer: Reverse relationship or Repo Rate.

Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $130,854. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $79,600, and annual cash outflows would increase by $41,000. Compute the cash payback period. (Round answer to 2 decimal places, e. G. 10. 52. )

Answers

The cash payback period of the long-term investment project called ZIP is 3.39.

Computation of the cash payback period

The cash payback period can be computed as follows:

Annual net benefit = Annual cash inflows - Annual cash outflows

Annual Net benefit = $79,600 - $41,000

Annual Net benefit = $38,600

Therefore, we have:

Cash payback period = Initial investment / Annual net benefit

Cash payback period = 130,854 / $38,600

Cash payback period = 3.39

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3. Which website did you use to find the image you used in your career presentation? Complete sentences are not necessary. (2.0 points)

Needed ASAP

Answers

The best kind of image to use for career presentation if you don't want to buy one is a Royalty-Free or Free License image.

How can you find Royalty-Free Images?

In order to find and download Royalty-Free Images, you will need to run an internet search using the keyword "Royalty-Free Images" or "License-Free Images".

An image is a Royalty-Free Image if you are not required to pay before downloading it.

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What did the International Monetary Fund (IMF) require in exchange for providing funds to heavily indebted customers in the 1980s and 1990s?

Answers

The adoption of a new fiscal ways by the customers was the requirement made in exchange for providing funds to heavily indebted people in the late 1900s.

What role did the IMF played in 1980s?

During the debt crisis in 1980s, the International Monetary Fund played a major role as a rescuer for the people affected.

The international banks in the IMF kept heavily indebted customers solvent but one a condition.

In conclusion, the condition was that they had to adopt of a new fiscal ways to have access to the relief funds.

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When the Fed buys securities from the public, banks' reserves ________ and the quantity of money ________.

Answers

When Fed buys securities from the public, banks' reserves increases and the quantity of money reduces in supply.

What are Securities?

Securities simply put are assets that has monetary values like bonds, stocks and they can be traded.

In recent times, people enjoy the digital form of money/securities like cyptocurrencies.

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Which are types of income tax that people pay? Check all that apply.

federal
local
Oprogressive
state
sales
flat

Answers

Answer:

federal

local

state

sales

please mark me as brainliest

The types of income tax that people pay are

federal

local

state

sales

What is taxes?

The term tax refers to that, compulsory financial charges are there which are to be paid by the taxpayers to the government for every department different taxes are liable to the taxpayers to the government there are many other taxes are bee there like road tax, etc.

According to the citizens are the taxpayers, there are different types of taxpayers have been there are like state tax, local tax, sales tax, and the different types of taxes have been there in it by paying the taxes the government runs.

Therefore, these are the types have been their taxes that have been paid to the government.

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Imagine that a firm sends out a message in the form of a print advertisement for a product. Which element is most likely to contribute to how receivers decode the message differently

Answers

The element that is most likely to contribute to how receivers decode the message differently is whether the receiver is a user of the product or not.

What is advertisement?

It should be noted that advertisement simply means the way of creating awareness regarding a product.

In this case, the element that is most likely to contribute to how receivers decode the message differently is whether the receiver is a user of the product or not.

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Imagine you are an entrepreneur starting a new video game company. What kind of financing would you most likely use to test out your new business idea

Answers

Bootstrapping corresponds to the type of funding that could be used for an entrepreneur to test his new business idea.

What is bootstrapping?

It is the use of personal resources to start a new business, not resorting to capital from external investors for this purpose, with the capital inflow only arising from the entrepreneur and customers.

Therefore, bootstrapping can be advantageous by giving full responsibility and management to the entrepreneur, but as disadvantages, there is increased personal risk and slow business growth.

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Products in the Blank______ stage of the product life cycle tend to consume a disproportionate share of management and financial resources relative to their future worth.

Answers

Answer:decline

Explanation:

products in the DECLINE stage of the product lifestyle tend to consume

TD Ameritrade is a company that buys and sells stocks and bonds as well as providing its customers with advice on when to buy and when to sell. TD Ameritrade is an example of a _____, a type of nondepository financial institution. finance company stock insurance company brokerage firm commodity broker mutual broker

Answers

Customers can trade financial assets such as common stocks, preference shares, futures markets, exchange-traded funds.

Currencies, choices, bitcoin, mutual funds, fixed interest securities, margin borrowing, and cash management through TD Ameritrade's electronic trading platform.

Thus Option C is correct.

Write about TD Ameritrade?

TD Ameritrade is one of the industry's best online brokerages, earning it the title of best brokerage for beginners in our rankings.

The award-winning thinkorswim trading platform is a favorite among active traders since it provides a strong yet user-friendly tool that is suitable for both pros and novices.

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Which is not an example of a risk management strategy?.

Answers

Buying a new car is not an example of a risk management strategy.

What do you mean by risk management strategy?

A risk management strategy is a systematic and consistent approach to identifying, assessing, and managing risk.

Travel insurance is an example of this. We do not accept the risks of a lost suitcase or an accident abroad, as well as the associated costs; instead, we pay a travel insurance company, so that they bear the financial consequences.

Thus, Buying a new car is not an example of a risk management strategy.

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Assume the marginal propensity to save is 0.10. Firms become optimistic and increase investment spending by $10 billion. Other things being equal, real GDP will:

Answers

The real GDP will increase by $20 billion if the MPS equals 0.10 and investment spending increases by $10 billion.

What is MPS?

MPS stands for marginal propensity to save which is determined by deducting the MPC value from 1. This value is used in computing the investment multiplier.

Given values:

MPS = 0.10

Change in investment spending (increase) = $10 billion

Computation of change in real GDP (increase):

[tex]\rm\ Change \rm\ in \rm\ real \rm\ GDP=\rm\ Multiplier\times\ \rm\ Change \rm\ in \rm\ investment \rm\ spending\\\rm\ Change \rm\ in \rm\ real \rm\ GDP=\frac{1}{MPS}\times\ \$10\rm\ billion\\\rm\ Change \rm\ in \rm\ real \rm\ GDP=10\times\ \$10\rm\ billion\\\rm\ Change \rm\ in \rm\ real \rm\ GDP=$20\rm\ billion[/tex]

Therefore, when the investment spending increased by $10 billion with MPS equal to 0.10 then the real GDP will also increase by $20 billion.

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How are letters of credit different from secured transactions?
A. A letter of credit tells a prospective seller how much you can buy.
A secured transaction provides the bank with assurance of
repayment.
B. There is no difference because the bank benefits in both cases.
C. A letter of credit is covered in Article 9 and a secured transaction
is covered in Article 5 of the UCC.
D. A letter of credit is sent from the seller to the buyer and a secured
transaction means the seller must ship the product.
SUBMIT

Answers

Answer:

D. A letter of credit is sent from the seller to the buyer and a secured transaction means the seller must ship the product.

Explanation:

I hope this helps !!!

Mass media advertising is an example of a _________ strategy.

Answers

Mass media advertising is a typical example of marketing strategy to increase brand awareness of a product.

What is an Advertisement?

Advertisement can be defined or thought of as a compaign orgainised and funded by a firm to tell the public about a new product.

In recent times, firms rely heavily on social media advetisement.

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