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
NeTakaya
3 years ago
9

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

s 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 Bob does not operate this boat 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 boat business.
Identify each of Charles's costs in the following table as either an implicit cost or an explicit cost of selling guitars.

a. The wages and utility bills that Charles pays
b. The wholesale cost for the guitars that Charles pays the manufacturer
c. The rental income Charles could receive if he chose to rent out his showroom
d. The salary Charles could earn if he worked as a financial advisor
Business
1 answer:
sesenic [268]3 years ago
6 0

Answer:

Explanation:

Explicit Costs refers to costs that involve an immediate outlay of cash from the business and it is recorded and reported to the management.

Implicit Cost refer to the cost which the company had foregone while employing the alternative course of action and is neither recorded nor reported to the management of the company.

a. The wages and utility bills that Charles pays

Identification: Explicit Cost

b. The wholesale cost for the guitars that Charles pays the manufacturer

Identification: Explicit Cost

c. The rental income Charles could receive if he chose to rent out his showroom

Identification:  Implicit Cost

d. The salary Charles could earn if he worked as a financial advisor

Identification:  Implicit Cost

You might be interested in
Jim left his previous job as a sales manager and started his own sales consulting business. He previously earned $70,000 per yea
emmainna [20.7K]

$45,000 per year is the economic cost of the time he contributes to the new business.

<h3><u>Explanation:</u></h3>

The difference between the accounting cost and the implicit cost refers to the economic cost. Implicit cost refers to the opportunity cost that the person incurs when he makes a choice. For example consider Geetha is spending something for watching a movie. The cost that she spends for the movie and the cost that can be forgone by her when she spends that for some other things will be included in the economic cost.

In the example given Jim  was earning d $70,000 per year and now he is paying himself  $25,000 per year for building a new business. Thus the economic cost will be $70,000 -$25,000 = $45,000 per year. Here the accounting cost is  $70,000  and the implicit cost is $25,000.

8 0
2 years ago
True or false?
Brrunno [24]
The answer would be true
4 0
2 years ago
Read 2 more answers
g sold their home (sales price $960,000; cost $260,000). All closing costs were paid by the buyer. Mitch and Michelle owned and
Llana [10]

Answer:

$700,000

Explanation:

Data provided in the question

Sales price of the home = $960,000

Cost price of the home = $260,000

Based on the above information,

The computation of the amount of gain included in gross income is shown below:

= Selling price of the home - cost price of the home

= $960,000 - $260,000

= $700,000

Hence, the amount of gain i.e $700,000 is included in the gross income

5 0
3 years ago
I WILL GIVE BRAINLIEST
Alborosie

Answer: Operations manager

Explanation:

7 0
3 years ago
The demand curve for a monopolistically competitive firm is downward sloping because
BlackZzzverrR [31]

The demand curve for a monopolistically competitive firm is downward sloping because there is a full or advanced degree of the powerfulness in the market.

<h3>What is the shape of demand curve of the monopolistically competitive firm?</h3>

A downward sloping demand curve characterizes a monopolistically competitive corporation because there is a lot of power in the market.

This curve signaled that the business firm has extraordinary market power. As each firm offers a unique product, market dominance is derived from product differentiation.

Therefore, the demand curve of monopolistically competitive market is downward sloping.

To learn more about the demand curve, refer to:

brainly.com/question/13131242

#SPJ4

7 0
2 years ago
Other questions:
  • Define the 8 steps in the engineering design process
    11·2 answers
  • On January​ 1, 2018, Waller Sales issued in bonds for . These are eightyear bonds with a stated rate of ​%, and pay semiannual i
    12·1 answer
  • A ____________ organization is characterized by direct two-way lines of responsibility, authority, and communication running fro
    14·1 answer
  • If the month-end bank statement shows a balance of $54,000, outstanding checks are $15,000, a deposit of $6,000 was in transit a
    12·1 answer
  • Kirsten, a manager, is writing an analysis of her employer's current and possible future revenues. Which of the following could
    10·1 answer
  • The KEYS to professional excellence in interpersonal communication include all of the following EXCEPT
    10·1 answer
  • If the CPI is 170 at the beginning of the year and 181 at the end, and the bank is paying a nominal interest rate of 6 percent,
    13·1 answer
  • The combination of media, Internet, entertainment, and phone services into a single device illustrates the principal of
    7·1 answer
  • You will need to revise your budget to account for a car payment. Which expense category would be the most difficult to change o
    6·1 answer
  • In the outpsider case, if cade tells the buyer, pat bennett, he has another offer of $550k, what should pat say?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!