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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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?
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