Business, 25.03.2020 07:59 yousifgorgees101
The table below provides the total revenues and costs for a dental practice for one year.
Total Revenue ($) 950,000
Total Costs ($):
Wages and salaries 700,000
Risk-free return of 3% on owner’s capital of $1,000,000 30,000
Interest on bank loan 50,000
Cost of supplies 150,000
Depreciation of capital equipment 20,000
Additional wages the dentist owner could have
earned in her next best alternative 0 Risk premium of 4% on owner’s capital of $1,000,000 40,000
7.1 Calculate the amount of explicit costs.
7.2 Calculate the amount of implicit costs.
7.3 Calculate the amount of accounting profits.
7.4 Calculate the amount of economic profits.
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The table below provides the total revenues and costs for a dental practice for one year.
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