The Table Below Provides the Annual Revenues and Costs for a Family-
Question 115
Question 115
Multiple Choice
The table below provides the annual revenues and costs for a family- owned firm producing catered meals. Total Revenues ($) Total Costs ($) wages and salaries risk- free return of 6% on owners’ capital of 250,000 rent - depreciation of capital equipment risk premium of 8% on owners’ capital of 250,000 - intermediate inputs forgone wages of owners in alternative employment interest on bank loan 500,000200,00015,000105,00025,00020,000150,00080,00010,000 TABLE 7- 1 -Refer to Table 7- 1. The accounting profits for this family- owned firm are
A) $0 B) $10 000 C) $30 000 D) $500 000 E) - $15 000
Correct Answer:
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