Madelyn owns a small pottery factory. She can make 1,000 pieces of pottery per year and sell them for $100 each. It costs Madelyn $20,000 for the raw materials to produce the 1,000 pieces of pottery. She has invested $100,000 in her factory and equipment: $50,000 from her savings and $50,000 borrowed at 10 percent (assume that she could have loaned her money out at 10 percent, too). Madelyn can work at a competing pottery factory for $40,000 per year. The economic profit at madelyn's pottery factory is:
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Madelyn owns a small pottery factory. She can make 1,000 pieces of pottery per year and sell them for $100 each. It costs Madelyn $20,000 ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
The marketing team of Hanchloe, Inc. was trying to decide whether to go ahead with the new marketing campaign or not, as they received inputs that the campaign may be perceived as racist just one day before the campaign was about to go live.
Answers (1)
Using an example, explain the relationship between human resources and business objectives ...
Answers (1)
Using the following year-end information for Calvin's Clothing, calculate the current ratio and acid-test ratio for the business: Cash $ 57,660 Short-term investments 13,500 Accounts receivable 57,000 Inventory 260,000 Prepaid expenses 8,850
Answers (1)
On May 1, Mary's Morsels Company provided catering services at a wedding. The bride is billed $4,000 and will pay during the following month. Record this transaction on May 1 in the accounting equation of Mary's Morsels by:
Answers (1)
What are Arial and Times New Roman examples of?
Answers (1)
New Questions in Business
If you put all the profits into your business, you may not be able to do which of the following? A: hire an accountant B: fund your IRA C:pay for your marketing D:develop new products
Answers (1)
Henry Sweet Co. currently makes 6" candy sticks that it sells for $0.20 each. Henry can make 12" candy sticks out of two 6" candy sticks by melting them together, which costs an additional $0.03 per 12" stick. Henry can sell the 12" sticks for $0.45.
Answers (1)
The customer relationship management process involves all the activities related to receiving and approving orders, shipping the goods on time, and collecting payment. Group of answer choices True False
No Answers
Explain, in your own words and step-by-step, what happens to wastewater once it reaches the treatment plant. (6 steps)
Answers (1)
The following information is from the 2017 records of Armand Music Shop: Accounts receivable, December 31, 2017 $43,000 (debit) Allowance for Bad Debts, December 31, 2017 prior to adjustment 1,500 (debit) Net credit sales for 2017 178,000 Accounts
Answers (1)