Answered

Get the answers you need at Westonci.ca, where our expert community is dedicated to providing you with accurate information. Discover the answers you need from a community of experts ready to help you with their knowledge and experience in various fields. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.

A business owner makes 50 items a day. He spends 8 hours in producing those items. If hired elsewhere he could have earned $10 an hour. The item sells for $10 each. Production occurs seven days a week. If the total costs are $10,000 a month, the accounting profit for the month equals:

Sagot :

Accounting profits for the month = $4,000.

What is production?

  • In order to create anything for consumption, several material and immaterial inputs are combined during the production process.
  • It is the process of producing output, a good or service that has value and enhances people's usefulness.

What are profits?

  • The difference between an economic entity's revenue from its outputs and the opportunity costs of its inputs is what is known as a profit.
  • It is equivalent to total income less total expenses, which includes both direct and indirect expenses.

Solution -

Production happens 7 days a week.

Let,s tale 28 days in a month (4 weeks in a month)

50 items are produced every day and each costs $10.

50 × 10 = $500 (Daily sale)

Monthly sale = 500 × 28 = $14,000 (Monthly revenue)

Cost of production per month = $10,000.

Profit = 14,000 - 10,000 = $4,000.

Therefore, accounting profits for the month = $4,000.

Know more about revenue here:

https://brainly.com/question/25623677

#SPJ4

Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Thank you for using Westonci.ca. Come back for more in-depth answers to all your queries.