subject
Business, 03.04.2020 15:36 kayladgranger

Rob Reiner, a musician by profession, is planning to open a musical instruments store. He estimates that his monthly expenses for operating this store would include $5,000 for wages to the sales and accounts staff, electricity charges worth $1,500, rent of $5,000, and maintenance charges of $400. To start this store, Rob would have to give up his present job as a piano teacher, which pays him $2,000 per month. Additionally, he will also have to borrow $25,000 from the bank to purchase the basic furniture and instruments for the store. Based on the current lending rate, the interest payment on this loan works out to $100 every month. Rob estimates that his monthly economic profit from the sale of musical instruments worth $16,000 will be $4,000 While estimating his economic profit, Rob is ignoring the factthat:

A. an increase in the demand for a commodity often results in an increase in its price.
B. the opportunity cost of opening the store is positive.
C. certain costs remain fixed in the short run.
D. interest rates on deposits are lower than the interest charged on loans.
E. the salaries of the sales staff are part of the fixed costs

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 10:30
Issued to the joint planning and execution community (jpec) initiates the development of coas; it also requests that the supported ccdr submit a commander's estimate of the situation with a recommended coa to resolve the situation (joint force command and staff participation in the joint operation planning and execution system, page 10)
Answers: 2
question
Business, 22.06.2019 10:40
Parks corporation is considering an investment proposal in which a working capital investment of $10,000 would be required. the investment would provide cash inflows of $2,000 per year for six years. the working capital would be released for use elsewhere when the project is completed. if the company's discount rate is 10%, the investment's net present value is closest to (ignore income taxes) ?
Answers: 1
question
Business, 23.06.2019 01:20
Boxes of honey nut oatmeal are produced to contain 16.0 ounces, with a standard deviation of 0.20 ounce. for a sample size of 49, the 3-sigma -x chart control limits areupper control limit (ucl-x) = ounceslower control limit =(lcl=max
Answers: 1
question
Business, 23.06.2019 02:10
Goldman services hired a new clerk to keep custody of and maintain all the equipment in the equipment yard. the clerk has not yet been adequately trained on the maintenance needs of the equipment. which internal control procedure needs strengthening?
Answers: 2
You know the right answer?
Rob Reiner, a musician by profession, is planning to open a musical instruments store. He estimates...
Questions
question
Geography, 26.10.2020 05:30
question
Mathematics, 26.10.2020 05:30
question
Mathematics, 26.10.2020 05:30
Questions on the website: 13722367