Answer: B. $60000
Explanation:
Implicit cost is the difference between the total revenue and the explicit cost( direct payment made to others in the course of running a business such as rent, material, wage) incurred by a firm. It represents an opportunity cost that arises when a company uses internal resources toward a project without any explicit compensation for the utilization of resources.
Given;
Units of software sold = 11000
Cost per unit = $75
Explicit cost ( costs of production, packaging, marketing, employee wages and benefits, and rent on a building) = $55 of cost per unit.
Therefore,
Total revenue = 11000 × $75 =$825000
Explicit cost = 11000 × $55 = $605000
Profit = $825000-$605000 =$22000
Salary at previous job = $45,000
Forgone entrepreneurial income =$5000
$100000 Bond at 10% interest per annum = $110000
Therefore,
$45000+5000+110000 = $160,000
Implicit cost = $220000-$160000 = $60000
