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Nadya [2.5K]
3 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]3 years ago
3 0

Answer:

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

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This is because land disputes fall under political distance and can get very serious. So serious in fact that nations have gone to war over such disputes with the latest being Azerbaijan and Armenia. Macmillan Toys may therefore find it difficult to expand into the country due to this land dispute.

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An office management firm has developed a system for efficiently organizing small medical and dental practices both through prop
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achieve economies of scope

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Which type of tax is paid by businesses on their profits to federal or state governments?
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High Country Corporation acquired two inventory items at a lump-sum cost of $80,000. The acquisition included 6,000 units of pro
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$9,000

Explanation:

Calculation for the amount of gross profit that should be recognize

First step is to calculate the

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A's sale value = $72,000

Second Step is to calculate B's sale value

B's sale value = 14,000 units*4 per unit

B's sale value= $56,000

Third step is to calculate the Total sale value

Total sale value = $72,000 + $56,000

Total sale value= $128,000

Fourth Step is to calculate the Cost of goods sold of A for 6,000 units and 2,000 units

Cost of goods sold of A for 6,000 units = ($72,000/$128,000) * $80,000

Cost of goods sold of A for 6,000 units = 0.5625*$80,000

Cost of goods sold of A for 6,000 units= $45,000

Cost of goods sold of A for 2,000 units = $45,000*2,000/6,000

Cost of goods sold of A for 2,000 units = $15,000

Last step is to calculate the Gross profit of A for 2,000 units

Gross profit of A for 2,000 units = (2,000*12 per units) - 15,000

Gross profit of A for 2,000 units = $24,000 - $15,000

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