1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Masja [62]
3 years ago
14

Hubert lives in San Diego and runs a business that sells guitars. In an average year, he receives $701,000 from selling guitars.

Of this sales revenue, he must pay the manufacturer a wholesale cost of $420,000; he also pays wages and utility bills totaling $247,000. He owns his showroom; if he chooses to rent it out, he will receive $9,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Hubert does not operate this guitar business, he can work as a financial advisor, receive an annual salary of $32,000 with no additional monetary costs, and rent out his showroom at the $9,000 per year rate. No other costs are incurred in running this guitar business.
Identify each of Hubert's costs in the following table as either an implicit cost or an explicit cost of selling guitars.
Business
1 answer:
erica [24]3 years ago
5 0

Answer:

Explicit costs are the monetary costs that a business incurs when it makes a payment, either in the form of wages, or taxes, or to manufacturers, etc.

Implicit costs are the opportunity costs that arise when businesses give up on other options when making a choice. They are not represented by any actual payments.

In this case, we have the following explicit costs:

$420,000 paid to the manufacturer

$247,000 paid in wages and utility bills

And we have the following implicit costs:

$9,000 in rent per year if Hubert rented out the local

$32,000 per year if Hubert worked as a financial advisor

You might be interested in
Help if yk thanks lol
kondor19780726 [428]

Answer:

Nicole has profit $400 ....,.............

6 0
3 years ago
Read 2 more answers
Bonds that have interest coupons attached to their certificates, which the bondholders present to a bank or broker for collectio
kiruha [24]
<span>The bond is a written promise to pay the bond's par value and interest at a stated contract rate. </span><span>Bonds that have interest coupons attached to their certificates, which the bondholders present to a bank or broker for collection, are called coupon bonds. 
</span><span>Bondholders detach coupons when they mature and present them to a bank or broker for collection.
</span>
3 0
3 years ago
A reporter appears on television and reports that a collegiate athlete is currently using steroids. The reporter has a sincere b
zhannawk [14.2K]

Answer:

The answer is D, the reporter is liable for a claim of libel

Explanation:

First of, we need to understand that libel in it self refers to a false statement or report published against an individual and of which the report has a very high tendency of tarnishing the individuals image. In order words, it can also be refereed to as the defamation of character where the victim in this case is refereed to as the character.

So,  referring back to the question. As a reporter, it is assumed that proper diligence has been done in respect to investigation or investigative journalism as some like to call it before going before the public to declare such a defaming statement and in such a case where such sequentially, the statement comes to be a false statement, the reporter and in some cases the firm at large is liable for a claim of libel.

So as related to the question asked, the answer is D.

6 0
3 years ago
Let’s see how fees can hurt your investment strategy. Let’s assume that your mutual fund grows at an average rate of 5% per year
elena-14-01-66 [18.8K]

Answer:

We notice that the more the fees increase for a constant rate of return, the number of years it takes to double on the investment also increases. For example;

a). 15.6 years

b). 20 years

c). 28 years

Explanation:

The rule of 70 is a formula that can be used to estimate the number of years it will take an investment to double up.The formula is expressed as;

Number of years to double=70/Annual rate of return

a). Given;

Annual rate of return per unit of investment=5%

Annual fees per unit of investment=0.5%

Net rate of return=Annual rate of return-Annual fees=(5%-0.5%)=4.5%

Replacing;

Number of years to double=70/Net rate of return

=70/4.5=15.555 to nearest tenth=15.6 years

b). Given;

Annual rate of return per unit of investment=5%

Annual fees per unit of investment=1.5%

Net rate of return=Annual rate of return-Annual fees=(5%-1.5%)=3.5%

Replacing;

Number of years to double=70/Net rate of return

=70/3.5=20.0 to nearest tenth=20 years

c). Given

Annual rate of return per unit of investment=5%

Annual fees per unit of investment=2.5%

Net rate of return=Annual rate of return-Annual fees=(5%-2.5%)=2.5%

Replacing;

Number of years to double=70/Net rate of return

=70/2.5=28.0 to nearest tenth=28 years

We notice that the more the fees increase for a constant rate of return, the number of years it takes to double on the investment also increases

6 0
3 years ago
Compton Company expects the following total sales: Month Sales March $ 37,000 April $ 27,000 May $ 21,000 June $ 32,000 The comp
Rina8888 [55]

Answer:

$11,025

Explanation:

From May sales, Total Credit sales = $21,000*70% = $14,700

Cash Collected in May (for sales) = Total Credit sales * 25%

Cash Collected in May = $14,700*25%

Cash Collected in May = $3,675

Accounts Receivables Balance = Total Credit sales (May) - Cash Collected in May

Accounts Receivables Balance = $14,700 - $3,675

Accounts Receivables Balance = $11,025

So, the budgeted accounts receivable balance on May 31 is $11,025.

5 0
3 years ago
Other questions:
  • A trucking company is hired to deliver 125 lamps for $12 each the company agrees to pay $45 for each lamp that is
    5·1 answer
  • In Florida, any driver less than 21 years of age who is stopped by law enforcement and has a breath or blood alcohol level of .0
    7·2 answers
  • Department A completed and transferred to finished goods a total of 60,000 units. Their ending inventory consisted of 40,000 uni
    10·1 answer
  • A _______ maintains and distributes to potential creditors information regarding the creditworthiness of potential debtors. mort
    7·1 answer
  • Both managers and workers cite low managerial ethics as a major cause of american
    5·1 answer
  • Which of the following is a likely result of a lack of accountability?
    9·1 answer
  • The Supplies account balance on February 1, 2016 was $2,000. During the month of February Bravo purchased $12,000 of supplies fo
    8·1 answer
  • Difference between monopoly and perfectly competitive market structure ​
    6·1 answer
  • The__________is based on a set of cause-and-effect linkages between internal and external performance, and in this fashion, defi
    15·1 answer
  • What is the total sales-mix variance in terms of the contribution margin?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!