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Author Question: The table below provides the annual revenues and costs for a family-owned firm producing catered ... (Read 58 times)

hannahmadyronde

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on: Oct 12, 2022
The table below provides the annual revenues and costs for a family-owned firm producing catered meals.

Total Revenues ($)500 000
​​
Total Costs ($)​
- wages and salaries200 000
- risk-free return of 6% on owners' capital of 250 00015 000
- rent105 000
- depreciation of capital equipment25 000
- risk premium of 8% on owners' capital of 250 00020 000
- intermediate inputs    150 000
- forgone wages of owners in alternative employment   80 000
- interest on bank loan 10 000

TABLE 7-1
Refer to Table 7-1. The accounting profits for this family-owned firm are
◦ $500 000.
◦ -$15 000.
◦ $0.
◦ $10 000.
◦ $30 000.
Microeconomics ¦ Ragan ¦ 17th Edition
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Marked as best answer by hannahmadyronde on Oct 12, 2022

KobyRhoads

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Reply #1 on: Oct 12, 2022
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hannahmadyronde

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