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Nadya [2.5K]
2 years ago
11

Bob lives in Houston and runs a business that sells boats. In an average year, he receives $842,000 from selling boats. Of this

sales revenue, he must pay the manufacturer a wholesale cost of $452,000; he also pays wages and utility bills totaling $301,000. He owns his showroom; if he chooses to rent it out, he will receive $38,000 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 an accountant, receive an annual salary of $48,000 with no additional monetary costs, and rent out his showroom at the $38,000 per year rate. No other costs are incurred in running this boat business.
Identify each of Darnell's costs as an implicit cost or an explicit cost of selling pianos.

a. The wholesale cost for the pianos that Darnell pays the manufacturer
b. The salary Darnell could earn if he worked as an accountant
c. The wages and utility bills that Darnell pays
d. The rental income Darnell could receive if he chose to rent out his showroom
Business
1 answer:
quester [9]2 years ago
3 0

Answer:

A. The wholesale cost for the pianos that Darnell pays the manufacturer.

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In the statement given above, it is noted that the meals that Melissa took are considered personal in nature. Hence, she can deduct this from the business expenses. 
8 0
3 years ago
According to the FTC's historical guidelines for mergers, would the FTC approve a merger between two firms that would result in
Alborosie

Answer:

B. Maybe. The FTC would scrutinize the merger and make a case-by-case decision.

Explanation:

If we considered the historical guidelines of FTC for the merger purpose so may be FTC could permit the merger between the two firms that could result in HHI of 1,025 after the merger as the merger represent the moderal level of the concentration in the market area so here FTC should analyzes the merger with cash to cash basis

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8 0
3 years ago
Astro Co. sold 20,500 units of its only product and incurred a $67,750 loss (ignoring taxes) for the current year as shown here.
maksim [4K]

Answer:

Break even point in dollar sales = $1,050,000

Explanation:

Break Even Point in dollar sales = Fixed Cost/ Contribution margin percentage

Contribution margin percentage = (Contribution margin/ Sales) X 100

Here we have for the year 2017

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Contribution margin percentage = ($194,750/$779,000) X 100 = 25%

Break even point in dollar sales = Fixed Cost $262,500/25%

= $1,050,000

3 0
3 years ago
As the demand for goods and services decreases, job growth _____.
lyudmila [28]

B. Decreases

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5 0
3 years ago
Read 2 more answers
Rice is a cheap staple food eaten multiple times of day by many people all over the world. In Trufflelandia, residents also eat
enot [183]

Answer:

Rice is so cheap and truffles are so expansive because D. People eat so much rice that an additional serving of rice has little marginal value, but the marginal value of another serving of truffles is very high.

Explanation:

When it comes to tasty or nutritious foods, there should not be any reason to be more expensive than others food stuffs. However, they often cost a little more. Regarding rice and its easy way of cooking, it is not a strong argument to talk about the price. So the right answer D, due to the fact that is true that eating a higher rate of rice won't have such a great marginal value as it will with truffles. It has to do a lot with higher demand of rice.

5 0
3 years ago
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