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Maru [420]
4 years ago
7

Harvey quit his job at State University where he earned $45,000 a year. He figures his entrepreneurial talent or foregone entrep

reneurial income to be $5,000 a year. To start the business, he cashed in $100,000 in bonds that earned 10 percent interest annually to buy a software company, Extreme Gaming. In the first year, the firm sold 11,000 units of software at $75 for each unit. Of the $75 per unit, $55 goes for the costs of production, packaging, marketing, employee wages and benefits, and rent on a building.
Refer to the above information. The implicit costs of Harvey's firm in the first year were:
a. $50,000
b. $60,000
c. $100,000
d. $150,000
Business
1 answer:
kompoz [17]4 years ago
6 0

Answer:

b. $60,000

Explanation:

Implicit cost is the cost which is not shown as a cost in the statement of income.

As it includes basically the opportunity cost.

This will include:

Salary foregone = $45,000

Entrepreneurial skills income = $5,000

Interest on bonds foregone = $100,000 \times 10% = $10,000

Thus, total implicit cost = $45,000 + $5,000 + $10,000 = $60,000

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Which of the following is a reason for involving in decision making the people who are going to be affected by its results?The d
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They will be more accepting of losses and failures if they are involved from the start.

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<u>Explanation:</u>

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4 years ago
Pine Street Inc. makes unfinished bookcases that it sells for $59. Production costs are $37 variable and $10 fixed. Because it h
Gwar [14]

Answer:

See below

Explanation:

Option of whether Pine street Inc. should sell unfinished book cases

Sales per unit

$59

Less:

Variable cost per unit

$37

Contribution per unit

$22

Less:

Fixed cost

$10

Operating profit

$10.

Option of whether Pine street inc. should sell finished book cases

Sales per unit

$75

Less :

Variable cost per unit

$8

Contribution per unit

$67

Less :

Fixed cost

$10

Operating profit

$57

Therefore, it is recommended that Pine street inc. should sell finished book cases because that would yield the highest operating profit.

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Answer:

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6 0
4 years ago
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krek1111 [17]

Answer:

e. brand dilution.

Explanation:

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4 years ago
Read 2 more answers
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