Robert Brown runs a small printing shop. He hires two ers at $80,000 per year, Pays annual rent of $50,000 for his shop, and spends $100,000 per year on materials.

Robert Brown runs a small printing shop. He hires two ers at $80,000 per
year, Pays annual rent of $50,000 for his shop, and spends $100,000 per year on
materials. He has $600,000 of his own funds invested in equipment (Copying
machine, computers, printing supply, and so forth) that could earn him $30,000
per year if alternatively invested. He has been offered $85,000 per year to work as
a Graphic designer for a marketing firm. He estimates his entrepreneurial talents
worth $25,000 per year. Total annual revenue from printing sales is $570,000.
Calculate the accounting profit and economic profit for Robert Brown’s printing
shop.

Do you need us to help you on this or any other assignment?


Make an Order Now
0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published.