Learning Take action 2-8 Research Paper

Learning activity II ch 8-U4

Exercise one particular: Anthony Figueroa is a CERTIFIED PUBLIC ACCOUNTANT, who functions for an accounting talking to firm. His annual wage income is usually $70, 1000. Anthony is usually considering opening up his individual consulting firm. He estimates that the gross annual rent pertaining to an office could cost him $20, 500; a admin would expense $24, 500 per year. If he would lease office gear, he would have to pay $11, 1000 per year. The purchase of necessary supplies, repayment of power bills, water and telephone bills, would expense approximately $5, 000 12 months. Anthony estimations that the income that he'd generate with consulting providers would be $120, 000 12 months. a. Precise cost sama dengan Accounting price

Rent $20, 000

Desenfado. Secretary twenty four, 000

Off. Equipment 10, 000

Resources 5, 1000

Total. Ex girlfriend or boyfriend. Cost$60, 000

b. The forgone earnings is $70, 000.

c. Economic income = TR – (Explicit cost & Implicit cost)

Economic revenue = 120, 000 – (60, 000+70, 000)

Economical profit sama dengan -10, 500

d. As a result of negative consequence, Anthony should certainly work for another individual, he should never run his own business. Exercise 2: Suppose that the economist of Corporation XYZ estimates the following long run price function for a product Meters that the firm produces and sells. TC = 5Q2 + 10Q +180

The marketplace price pertaining to product Meters is fixed at L = seventy dollars

a. TFC = 180

b. TVC = 5QВІ + 10Q

c. ATC = MC


ATC = (5QВІ = 10Q = 180)


ATC = 5Q +10 +180/Q

MC = 10Q + 10


5Q + 10 +180/Q = 10Q + twelve

-5Q + 180Q sama dengan 0

Queen Q

-5QВІ + one hundred and eighty = 0

-5QВІ sama dengan -180

в€љQВІ =в€љ36

Queen = 6 units

d. P = MC

70 = 10Q +10

60 = 10Q

Q = 6

Earnings = TR –TC

Revenue = 70(6) – (5x6² + 10x6 +180) sama dengan 0

Typical profits, as the profits equals 0.

L 8-3 Incremental Cost. To the south Park Application, Inc. produces innovative interior decorating software that it sells to create studios, residence furnishing stores, and so on. The yearly amount of output can be 15, 000 units. Value and costs per product are as follows:

Selling Price



Direct material


Direct labor


Varying overhead


Variable selling expenses


Fixed advertising expenses



Product profit ahead of tax

$ 75

Management is assessing the possibility of creating an online business to sell it is software directly to consumers for a price of $300 per unit. Even though no added capital expenditure is required, added shipping and handling costs are believed as follows:

Immediate labor

$30 per product

Variable cost to do business

$5 every unit

Adjustable selling bills

$2 every unit

Fixed selling expenditures

$20, 1000 per year

Estimate the pregressive profit that South Area would make by modifying its musical instruments and marketing them right to end users.

Pregressive revenue every unit ($300 - $250) $50

Pregressive variable cost per product ($30 + $5 & $2) -$37 Incremental income contribution per unit $13

Yearly output volume in unitsH 15, 000

Gradual variable revenue per year$195, 000

Incremental fixed expense per year -$20, 000

Every year incremental profit$175, 000

Since the profit is usually positive, the choice to engage in further processing would be even more profitable.

P 8. 5 Accounting and Economic Costs. Three graduate business college students are considering operating a wonderful fruit smoothie stand in the Harbor Suspension springs, Michigan, resort area during their summer break. This is an alternative to summer employment with a community firm, exactly where they would each earn $6, 000 in the three-month summer period. A fully prepared facility can be leased by a cost of $8, 500 for summer time. Additional 0projected costs will be $1, 000 for insurance and $3. 20 per unit for materials and supplies. Their very own fruit smoothies would be priced at $5 per device. A. What is the accounting cost function for this organization?

The accounting cost function is:

TotalFixed Variable

Accounting = TCA = renting plus + materials in addition

Cost insurance charges supplies costs

= $8, 000 & $1, 000 + $3. 2Q

sama dengan $9, 500 + $3. 2Q



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