Adam Weed Is the Owner/operator of a Flower Shop

question 87

Multiple Choice

Adam Weed is the owner/operator of a flower shop.Last year he earned $250,000 in total revenue.His explicit costs were $175,000 paid to his employees and suppliers (assume that this amount represents the total opportunity cost of these resources) .During the year he received three offers to work for other flower shops with the highest offer being $75,000 per year.Which of the following is true about Adam's accounting and economic profit?

• A) Accounting profit = $75,000; economic profit = $0.
• B) Accounting profit = $175,000; economic profit = $75,000.
• C) Accounting profit = $75,000; economic profit = negative $100,000.
• D) Accounting profit = $0; economic profit = negative $75,000.

Understand the influence of ethnicity, culture, and demographics on personality assessment.

Distinguish between various research methods and their applications in studying personality.

Understand the various methods and tools used in the assessment of personality and their applicability across diverse populations.

Recognize the benefits and limitations of case studies and case histories in understanding emotional problems.

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Definitions:

Break-Even Point

The point at which total costs and total sales are equal, resulting in no net loss or gain for the business.

Contribution Margin

The gap between income from sales and variable expenses, which is utilized to pay for fixed expenses and produce earnings.

Selling Price

Selling price is the amount a buyer pays to purchase a product or service from a seller.

Variable Cost

Costs that change in proportion to the level of goods or services produced, such as materials and labor costs.