300 x 0.50 = 150
150 - 125 = 25
Her profits are therefore 25
Prime Costs: Prime costs are those costs which are prime importance for making any product and include: Prime Cost = Direct Material + Direct Labor
if you have a dollar it costs 42, then your quarter dollar costs 21. Its just half the dollar
if you have a dollar it costs 42, then your quarter dollar costs 21. Its just half the dollar
Value based pricing is a method of pricing a product based on perceived value. This method sets aside the issue of production and distribution costs and focuses more on what the buyer is willing to pay. This method of pricing is the most popular way to bring more profits to a company's table.
5.76
greater then economic profits,as accounting profits do not include implicit costs
Profits will be maximized when marginal revenue is equal to marginal costs. This will only happen in cases where there are fixed costs.
Well it depends on how much each cup of lemonade costs.
Profit is calculated by subtracting costs from revenue.
the lemons are used to make lemonade which means if you wish to use them you must buy a lemonade stand which costs 500
Business profits are impacted by several factors. One important one is the taxes it must pay. Another is operating costs. The impact of its competitors also affects profits. Profits are also impacted by salary costs.
equal to marginal revenue
equal to marginal revenue
profits
profits
The accounting profit is the difference between total revenue and total cost excluding the economic cost (opportunity cost) of owner-supplied resources such as time and capital. At the other hand, In the economic cost, we include the opportunity cost in our calculations. · When total revenue exceeds both explicit and implicit costs, the firm earns economic profit. · Economic profit is smaller than accounting profit Another answer culed be: Economic Profit is slightly different than accounting profit, which merely the firm's total revenues minus its total costs. Economic profit is defined as total revenues minus total operating costs minus opportunity cost. Opportunity cost is defined as the cost of the profits you forgo by not doing another activity. For example the opportunity costs of opening a lemonade stand is equal to the difference between the accounting profits of the lemonade stand minus the accounting profits of a more profitable hot dog stand.
Economists always include both implicit and explicit costs in the calculation of their profits while accountants only cater for explicit costs when calculating profits.So due to the inclusion of opportunity costs, which can be termed implicit costs, economists' profits will always be lower than accountants' profits.Hence an accountant may say they are making profits while it is different from an economist's view.