Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Business Management Expert

Could you help me solve the following economic question?

Graduation comes and the Dean has just shaken your hand. But, instead of taking that nice job offer of $130,000, you decide to take your MBA to heart and start your own business. You take $500,000 out of your savings account and start yet another trendy coffee house in campustown. After your first year, your accountant tells you that revenues were $150,000. Your total costs amounted to just $60,000 worth of electricity, cups, and coffee (your place is "minimalist" trendy). There is no depreciation of your capital stock. Your accountant informs you that you have just turned a clear $90,000 profit, but your economics training makes you suspect of this figure. Carefully discuss the profit situation at your coffee house. How does this change if the "average rate of return" in the economy increases?

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M93108065
  • Price:- $10

Priced at Now at $10, Verified Solution

Have any Question?


Related Questions in Business Management

Johanna likes to drink her coffee with milk and never black

Johanna likes to drink her coffee with milk (and never black!). She requires 3 tbsp of milk to be able to enjoy one cup of coffee. Suppose that Johanna has $22 to spend on coffee and milk per week. Coffee costs $1.25 per ...

After reviewing the harvard case study titled alaska

After reviewing the Harvard Case Study titled "Alaska Airlines: Navigating Change" What are the key problems/issues. What are the consequences of these problems/issues?

Considering their code of ethics compare the mission of the

Considering their code of ethics, compare the mission of the following IT professional organization: ACM, IEEE, AITP, and PMI.

Part of having a professional online presence is creating

Part of having a professional online presence is creating professional content for peers to engage with and to share your expertise. Write a 350- to 525-word article that discusses key stakeholders in the health care sec ...

What are some strategies for creating a culture of

What are some strategies for creating a culture of change?

Explain using diagrams what is a normal profit and why

Explain, using diagram(s) what is a normal profit and why would someone want to keep their business running when they are making a normal profit.

Case study car loan division at brissy Case Study: Car Loan Division at Brissy Banking

Case Study: Car Loan Division at Brissy Banking Background: Brissy Banking (BB) is a financial organisation in Queensland, Australia. They have over 15,000 staff and operate in all states and territories of Australia. BB ...

What is the benefit the beyond budgeting please also

What is the benefit the Beyond budgeting? Please also explain how each are used.

Time to go back to the beginning continuednow you have

Time to go back to the beginning... Continued... Now, you have thought extensively about a pencil, and written a discussion post.  Considering this,  What is technology? What is the essence of technology? Where does tech ...

Directionspick one topic for word and one topic

Directions Pick one topic for Word and one topic for PowerPoint to discuss. Word Watermark: What is the purpose of watermark for a document? What do you consider when you work on a watermark in Word? Newsletter: What are ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As