Chris was the business manager for a real estate firm earning an annual salary of $40,000. Then Chris decided to become a consultant. Chris hired an administrative assistant at $25,000 per year and rents office space (utilities included) for $36,000 per year. Chris earned $100,000 in total revenue the first year as a consultant. What is Chris's explicit annual cost? A. $15,000B. $12,000C. $36,000D. $51,000

$61,000

Explanation:

Explicit costs are the direct expenses incurred in running a business.  They have a determined dollar value that reflects on the business records. Explicit costs have a direct impact on profits.

Examples of explicit costs include rent, wages, raw materials,  utilities, and other direct costs. For Chris, the direct (explicit )cost of his business will be the salary to the administrative secretary and rents office space (utilities included)

Explicit cost will be

=$25,000 +$36,000

=$61,000