Bus 640

Applied line of works BUS 640: Managerial Economics | | | | | | 2010| Revenues| | | | | | Revenue from sales of harvest-home and services| $970,000.00 | Operating constitute and expenses| | | | Cost of products and services parcel out| $35,000.00 | | Selling expenses| | | $155,000.00 | | Administrative expenses| | $45,000.00 | | | sum of money operating cost and expenses| $555,000.00 | Income from operations| | | $415,000.00 | Interest expense (bank loans)| | $45,000.00 | Income Taxes| | | | $28,000.00 | dismiss Income| | | | $165,000.00 | | | | | | | $177,000.00 | Applied Problem 1 Chapter 1 1. At the beginning of the yr, an audio engineer quit his argumentation and gave up a salary of $175,000 per year in distinguish to start his own business, Sound Devices, Inc. The brisk company builds, installs, and maintains consumption audio equipment for business that requires high-quality audio systems. A pa rtial income control for Sound Device, Inc. is shown below: To get started, the possessor of Sound Devices played out $100,000 of his personal savings to conduct for some of the capital equipment employ in business.

In 2010, the proprietor of Sound Devices could have clear a 15 part return by investing funds in stocks of a new business with risk takes like to the risk level at Sound Devices. a. What are the core explicit, add implicit, and total economic costs in 2010? evident Costs| | | | | | | | | | | | add operating costs and expenses| | $555,000| Interest expenses| | | $45,000| Income taxes| | | $28,000| Net Income| | | | $165,000| ! Total hard-core Costs for 2010| | $793,000| inexplicit Costs| | | | | | | | | | | | yearly Salary| | | | $175,000| 15% interest on a $100,000 investment| | $15,000| Total Implicit Costs for 2010| | $190,000| | | | | | | | Economic Costs| | | | | | | | | | | Total Explicit Costs...If you command to get a full essay, nightspot it on our website: OrderCustomPaper.com

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