A company owns an empty office building and is deciding how to use it next year. It would cost $100,000 to staff the office and $15,000 for equipment. The revenues would be $160,000. Meanwhile, it could rent the office to another company for $75,000 in revenues. In both cases, the company must pay $5,000 for the building's electricity.
Required:
a) If the company is seeking to maximize its economic profit, which course should it pursue and what is the outcome?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A company owns an empty office building and is deciding how to use it next year. It would cost $100,000 to staff the office and $15,000 for ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Javier, a homeowner, files a lawsuit against dean, his construction contractor. they meet with their attorneys to try to resolve their dispute before going to trial. this proceeding is known as
Answers (1)
Quantity along the import demand curve equals: A. the quantity demanded by domestic consumers minus the quantity in the no-trade equilibrium. B. the quantity demanded minus the quantity supplied by domestic producers at every price. C.
Answers (1)
The Stationery Company purchased merchandise on account from a supplier for $9,900, terms 1/10, n/30. The Stationery Company returned merchandise with an invoice amount of $1,300 and received full credit. a.
Answers (2)
On July 1, 2020, Cheyenne Corp. pays $21,900 to Kalter Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ending December 31. For Cheyenne Corp.
Answers (1)
A Super Happy Fun Ball is dropped from a height of 10 feet and rebounds 13/14 of the distance from which it fell. How many times will it bounce before its rebound is less than 1 foot? It will bounce times before its rebound is less than 1 foot.
Answers (1)
New Questions in Business
A qualification that might ordinarily be argued as being a basis for discrimination, but a company can show is job related and necessary is called a a. real and necessary distinction. b. quasi-discriminatory factor. c.
Answers (1)
Rasheed can afford a monthly car payment of $600 for 5 years at an annual interest rate of 4 percent. Which of the following is closest to the amount he will be able to borrow for a new car? Remember, loans are END of period.
Answers (1)
Kimbeth Manufacturing uses process costing to control costs in the manufacture of Dust Sensors for the mining industry. The following information pertains to operations for November.
Answers (1)
If the consumer price index was 170 in one year and 180 in the next year, then the rate of inflation is approximately:
Answers (2)
Deitz Corporation is projecting a cash balance of $30,600 in its December 31, 2019, balance sheet. Deitz's schedule of expected collections from customers for the first quarter of 2020 shows total collections of $188,700.
Answers (1)