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german
3 years ago
9

Sam lives in San Diego and runs a business that sells pianos. In an average year, he receives $793,000 from selling pianos. Of t

his sales revenue, he must pay the manufacturer a wholesale cost of $430,000; he also pays wages and utility bills totaling $301,000. He owns his showroom; if he chooses to rent it out, he will receive $15,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Sam does not operate this piano business, he can work as a financial advisor, receive an annual salary of $50,000 with no additional monetary costs, and rent out his showroom at the $15,000 per year rate. No other costs are incurred in running this piano business.
Identify each of Sam's costs as either an implicit cost or an explicit cost of selling guitars.

a. The wages and utility bills that Sam' pays
b. The wholesale cost for the guitars that Sam' pays the manufacturer
c. The rental income Sam' could receive if he chose to rent out his showroom
d. The salary Sam' could earn if he worked as a financial advisor
Business
1 answer:
iragen [17]3 years ago
7 0

Answer:

a. explicit cost

b. explicit cost

c. implicit cost

d. implicit cost

Explanation:

Explicit costs can be defined as the actual costs incurred to run the business like supplies, utilities, materials or wages, while implicit costs can be defined as the opportunity cost of running the business like the potential salary of working in another job or the possible revenue of renting the current operating location.

a. The wages and utility bills that Sam' pays - explicit cost (actual costs)

b. The wholesale cost for the guitars that Sam' pays the manufacturer - explicit cost (actual costs)

c. The rental income Sam' could receive if he chose to rent out his showroom  - implicit cost (potential revenue lost)

d. The salary Sam' could earn if he worked as a financial advisor - implicit cost (potential revenue lost)

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Answer:

Roland works as a researcher for his manufacturing firm. He has conducted primary research to collect relevant market research data that will help his firm. He decided to use mathematical and statistical tools to analyze the data because the data is in nature.

Roland is about to analyze primary market research data.

Explanation:

Primary data are always in a state of nature.  Primary data are collected by Roland before analysis are from first-hand or primary sources.  For Roland to acquire the data, he must use primary research methods like surveys, interviews, or experiments. Because primary data are acquired with the research project in mind and directly from primary sources, they are contrasted with secondary data.  Secondary data were acquired by some other researchers and used in their analyses before being collected by another researcher as a basis for research continuation.

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Mary wants to help pay for beth's education(her granddaughter). she has decided to pay for  half of the tuition costs, which are
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First, you have to calculate the amount of tuition when the student reaches age 18. Do this by multiplying $11,000 by 1.07 each year from age 12 until it reaches age 18. Thus, 7 times.

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At age 21: 20,223


Then, we use this formula:

A = F { i/{[(1+i)^n] - 1}}

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Ate age 19

A = (17664/2) { 0.04/{[(1+0.04)^7] = $1,118 deposit for the 2nd year

At age 20:

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At age 21:

A = (18900/2) { 0.04/{[(1+0.04)^8] = $955 deposit for the 4th year

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Common stock is a vehicle for selling ownership and another way to raise money for​ operations, expansion, or other business nee
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Common stock is a kind of  company holding, a type of safety. In many other regions of the world, the terms polling share and prevalent share are frequently were using.

The "common stock" is used mainly in the USA. These are classified as shareholdings or common shares in the United Kingdom and other Commonwealth.

It means that one common stock share constitutes percentage equity of a corporation. In certain words, this is a way to split the assets of a corporation.

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The firm initially produced 500 pants and 700 shirts. If the firm decides to increase the number of shirts by 100 units, the opp
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<span>If the firm decides to increase the number of shirts by 100 units, the opportunity cost will be 200 pants. If the firm is at point E and decides to increase the production of shirts by 500 units, the opportunity cost will be 400 pants.</span>
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