Aikman Company paid dividends of $2,410, $0, $1,570 and $1,060 over the first four years of the company's existence, respectively. If Retained Earnings has an ending balance of $9,700 at the end of year four, what was the average annual amount of net income (loss) over the first four years for Aikman?
A. $840. B. $14,740. C. $3,685. D. $1,260.
Suppose that a firm produces 200,000 units a year and sells them all for $10 each. The explicit costs of production are $1,500,000 and the implicit costs of production are $300,000. The firm has an accounting profit of:
a. $500,000 and an economic profit of $200,000
b. $400,000 and an economic profit of $200,000
c. $300,000 and an economic profit of $400,000
d. $200,000 and an economic profit of $500,000
