Peggy-sue’s cookies are the best in the world, or so i hear. she has been offered a job by cookie monster, inc., to come to work for them at $125,000 per year. currently, she is producing her own cookies, and she has revenues of $260,000 per year. her costs are $40,000 for labor, 1$10,000 for rent, $35,000 for ingredients, and $5,000 for utilities. she has $100,000 of her own money invested in the operation, which if she leaves can be sold for $40,000 that she can invest at 10 percent per year.

a. calculate her accounting and economic profits.

b. advise her as to what she should do.

Which type of market are you in if your company, along with three other companies, controls 95 percent of the total music industry?

Lusk corporation produces and sells 14,300 units of product x each month. the selling price of product x is $25 per unit, and variable expenses are $19 per unit. a study has been made concerning whether product x should be discontinued. the study shows that $72,000 of the $102,000 in monthly fixed expenses charged to product x would not be avoidable even if the product was discontinued. if product x is discontinued, the annual financial advantage (disadvantage) for the company of eliminating this product should be:

Jacob is a member of wcc (an llc taxed as a partnership). jacob was allocated $155,000 of business income from wcc for the year. jacob’s marginal income tax rate is 37 percent. the business allocation is subject to 2.9 percent of self-employment tax and 0.9 percent additional medicare tax. (round your intermediate calculations to the nearest whole dollar a) what is the amount of tax jacob will owe on the income allocation if the income is not qualified business income? b) what is the amount of tax jacob will owe on the income allocation if the income is qualified business income (qbi) and jacob qualifies for the full qbi duduction?