You own and operate a bike store. each year, you receive revenue of $200,000 from your bike sales, and it costs you $100,000 to obtain the bikes. in addition, you pay $20,000 for electricity, taxes, and other expenses per year. instead of running the bike store, you could become an accountant and receive a yearly salary of $40,000. a large clothing retail chain wants to expand and offers to rent the store from you for $50,000 per year. how do you explain to your friends that despite making a profit, it is too costly for you to continue running your store?

(a) find your accounting profit.

(b) find your economic profit.

(c) explain your decision.

Which of the following is one of the advantages primarily associated with a performance appraisal? (a) it protects employees against discrimination on the basis of race. (b) it motivates employees to work on their shortcomings. (c) it encourages employees to play the role of the whistle-blower. (d) it accurately measures the resources of the firm.

Magic realm, inc., has developed a new fantasy board game. the company sold 15,000 games last year at a selling price of $20 per game. fixed expenses associated with the game total $182,000 per year, and variable expenses are $6 per game. production of the game is entrusted to a printing contractor. variable expenses consist mostly of payments to this contractor.required: 1-a. prepare a contribution format income statement for the game last year.1-b. compute the degree of operating leverage.2. management is confident that the company can sell 58,880 games next year (an increase of 12,880 games, or 28%, over last year). given this assumption: a. what is the expected percentage increase in net operating income for next year? b. what is the expected amount of net operating income for next year? (do not prepare an income statement; use the degree of operating leverage to compute your answer.)

En major recording acts are able to play at the stadium. if the average profit margin for a concert is $175,000, how much would the stadium clear for all of these events combined?