Answer:
Rivercity Coffee Shop
Chad cannot sue Jose. The $10,000 is paid to Jose is a bribe. Since a bribe is not legal, it cannot form the basis for an enforceable contract.
Moreover, the offer by Chad is an antitrust and anti-competition consideration that is legally frowned upon. illegal contract
Explanation:
For a contract to be enforceable, it cannot be illegal. A bribe is illegal. The basis for the contract is illegal. Therefore, Chad cannot sue Jose. Since Jose decided to breach the contract, neither Chad nor Jose is entitled to any compensation. Jose cannot be held liable for non-performance.
Solution :
1.
The income from renting his showroom that Paolo would receive if he allowed to rent his showroom is a Implicit cost as this is a cost which will not be paid in actual.
The wages as well as the utility bills paid by Paolo is an example of explicit cost as this cost would be paid in actual for the businesses and are added in accounting.
The wholesale amount that Paolo pays for the pianos to the manufacturer is an explicit cost and is aid in actual to the manufacturer.
The salary that Paolo could have earned if he choses to be an accountant will be an implicit cost as this cost is not paid in actual.
2. Paolo's accounting profit can be calculated by :
Accounting profit = revenue - explicit cost
= 851,000 - 476,000 - 281,000
= $ 94,000
3. Paolo's economic profit is :
Economic profit = accounting profit - implicit profit
= 94,000 - 34,000 - 71,000
= -11,000
Sole proprietorships are often owned by financial institutuins
