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
What are entrepreneurs?
mezya [45]

Answer:

Entrepreneurs are people who organize/operate their own buisness or buisnesses.

Explanation:

hope this helps lad :)

8 0
3 years ago
Read 2 more answers
What does gaslighting mean?
LenKa [72]
It’s basically manipulate
4 0
3 years ago
Read 2 more answers
Use the following information to determine the break-even point in units (rounded to the nearest whole unit): Unit sales 58,000
Tema [17]

Answer:

29,394 units

Explanation:

The formula for break even point is given as Fixed cost / Contribution margin.

Where;

Contribution margin = Sales per unit - Variable cost per unit

Given that ;

Fixed cost = $194,000

Unit selling price = $14.90

Unit variable cost = $8.30

Therefore;

BEP(units) = $194,000 / $14.90 - $8.30

= $194,000 / $6.6

= 29,394 units

5 0
3 years ago
Analyzing and Reporting Financial Statement Effects of Transactions M.E. Carter launched Carter Company, a professional services
Aleonysh [2.5K]

Answer:

$18,000

Explanation:

To find the Sales Revenue we simply add the $12,000 cash received immediately, and the $30,000 received as partial payment, totalling $42,000.

Then, we simply complete the proposed income statement:

Income Statement for the Month Ended in March 31

Sales Revenue               $42,000

Rent Expense                  $9,600

Wage Expense                $14,400

Net Income                      $18,000

Net Income is equal to Revenue - expenses.

7 0
2 years ago
Steve and Grace know that their nephew loves to travel. Steve and Grace find a great deal on a timeshare and tell Mike they are
Alexxandr [17]

Answer:

Explanation:

That depens of the red tape, if there is one, Mike can claim rigths over the good depending on the negotiation, but if there is no a signed deal it is impossible to claim according to the law.

3 0
3 years ago
Other questions:
  • In many organizations, marketing does not have a place of importance in the organizational hierarchy. Why do you think this happ
    6·1 answer
  • EASY 20 POINTS
    5·1 answer
  • True or False
    6·2 answers
  • The Lancet, a leading medical journal, published a paper on a possible link between autism in children and the measles, mumps, r
    10·1 answer
  • What is the net pay?​
    10·1 answer
  • Bullen Inc. acquired 100% of the voting common stock of Vicker Inc. on January 1, 2018. The book value and fair value of Vicker'
    6·1 answer
  • Lee, an attorney, uses the cash receipts and disbursements method of reporting. A client gave Lee 500 shares of a listed corpora
    6·1 answer
  • Max worked 48 hours last week. What is his gross pay for the week if his regular hourly pay is 13.50
    8·1 answer
  • A manager is asked to initiate activities that will support environmental scanning. Which activity should be used by this manage
    5·1 answer
  • When you would like to send an e-mail to your coworkers about planned maintenance on the network, where is the best place in the
    12·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!