Roma was a School Teacher
Problem 1
1. In 2008, Roma was a schoolteacher and earned $40,000 for the entire year. But she enjoys creating cartoons, so at the beginning of 2009, Roma quit teaching and set to work as a cartoonist. She stopped renting out her basement for $5,000 a year and began to use it as her office. She used $5,000 from her savings account to buy a new computer which she expects will last for 5 years. She leased a printer for $150 a year. During 2009, Roma paid a total of $1,250 for paper, utilities, and postage; the bank paid 5 percent a year on savings account balances; and Roma sold $50,000 of cartoons. Normal profit is $3,000 a year. At the end of 2009, Roma was offered $4,000 for her computer, but she did not sell it. For the entire year 2009, state or calculate Roma’s:
a) Total Revenue. Revenue is the amount that a firm receives from sale of goods , Roma earned $50000.
b) Explicit costs. (Money she actually paid). Explicit costs represent clear, obvious cash outflows from a business, Explicit costs are the $150 printer lease and $1,250 for paper, utilities, and postage. So explicit costs are $1,400.
In 2008, Roma was a schoolteacher and earned $40,000 for the entire year. But she enjoys creating cartoons, so at the beginning of 2009, Roma quit teaching and set to work as a cartoonist. She stopped renting out her basement for $5,000 a year and began to use it as her office. She used $5,000 from her savings account to buy a new computer which she expects will last for 5 years. She leased a printer for $150 a year. During 2009, Roma paid a total of $1,250 for paper, utilities, and postage; the bank paid 5 percent a year on savings account balances; and Roma sold $50,000 of cartoons. Normal profit is $3,000 a year. At the end of 2009, Roma was offered $4,000 for her computer, but she did not sell it. For the entire year 2009, state or calculate Roma’s:
a) Total Revenue. Revenue is the amount that a firm receives from sale of goods , Roma earned $50000.
b)
1. In 2008, Roma was a schoolteacher and earned $40,000 for the entire year. But she enjoys creating cartoons, so at the beginning of 2009, Roma quit teaching and set to work as a cartoonist. She stopped renting out her basement for $5,000 a year and began to use it as her office. She used $5,000 from her savings account to buy a new computer which she expects will last for 5 years. She leased a printer for $150 a year. During 2009, Roma paid a total of $1,250 for paper, utilities, and postage; the bank paid 5 percent a year on savings account balances; and Roma sold $50,000 of cartoons. Normal profit is $3,000 a year. At the end of 2009, Roma was offered $4,000 for her computer, but she did not sell it. For the entire year 2009, state or calculate Roma’s:
a) Total Revenue. Revenue is the amount that a firm receives from sale of goods , Roma earned $50000.
b) Explicit costs. (Money she actually paid). Explicit costs represent clear, obvious cash outflows from a business, Explicit costs are the $150 printer lease and $1,250 for paper, utilities, and postage. So explicit costs are $1,400.
In 2008, Roma was a schoolteacher and earned $40,000 for the entire year. But she enjoys creating cartoons, so at the beginning of 2009, Roma quit teaching and set to work as a cartoonist. She stopped renting out her basement for $5,000 a year and began to use it as her office. She used $5,000 from her savings account to buy a new computer which she expects will last for 5 years. She leased a printer for $150 a year. During 2009, Roma paid a total of $1,250 for paper, utilities, and postage; the bank paid 5 percent a year on savings account balances; and Roma sold $50,000 of cartoons. Normal profit is $3,000 a year. At the end of 2009, Roma was offered $4,000 for her computer, but she did not sell it. For the entire year 2009, state or calculate Roma’s:
a) Total Revenue. Revenue is the amount that a firm receives from sale of goods , Roma earned $50000.
b)