Business, 04.03.2022 03:40, Amandarobersonn

Kenji lives in New York City and runs a business that sells guitars. In an average year, he receives $704,000 from selling guitars. Of this sales revenue, he must pay the manufacturer a wholesale cost of $404,000; he also pays wages and utility bills totaling $286,000. He owns his showroom; if he chooses to rent it out, he will receive $3,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Kenji does not operate this guitar business, he can work as an accountant and receive an annual salary of $20,000 with no additional monetary costs. No other costs are incurred in running this guitar business. Identify each of Jake's costs given below as either an implicit cost or an explicit cost of selling guitars. a. The wholesale cost for the guitars that Musashi pays the manufacturer
b. The rental income Musashi could receive if he chose to rent out his showroom
c. The salary Musashi could earn if he worked as a paralegal
d. The wages and utility bills that Musashi pays

Answers: 1

Show answers

Other questions on the subject: Business

Business, 22.06.2019 03:00, nyahdrake

You are the manager of the packaging department in a cookie factory. (obviously, the packaging employees cannot eat the cookies that are transferred in during the period.) after your employees insert cookies into colorful packages (step 1) for display on store shelves, the packages of cookies are then boxed using cardboard cartons (step 2) for shipment to stores. each unit of product is represented by a carton of packaged cookies. the packaging department began the period with 1,000 units of cookies. during the period, 5,000 units of cookies were transferred in from the baking department and 5,500 units of cookies were transferred out to the finished goods department. the number of units of cookies in the ending inventory of the packaging department equals:

Answers: 1

continue

Business, 22.06.2019 13:10, Mikey3414

Trey morgan is an employee who is paid monthly. for the month of january of the current year, he earned a total of $4,538. the fica tax for social security is 6.2% of the first $118,500 earned each calendar year, and the fica tax rate for medicare is 1.45% of all earnings for both the employee and the employer. the amount of federal income tax withheld from his earnings was $680.70. his net pay for the month is .

Answers: 1

continue

Business, 23.06.2019 00:30, peno211

Suppose there is a 6 percent increase in the price of good x and a resulting 6 percent decrease in the quantity of x demanded. price elasticity of demand for x is a. 0 b. 6 c. 1 d. 36

Answers: 2

continue

Business, 23.06.2019 06:50, maya8909

How is a federal loan different from a private loan for an education? a federal loan is available for any student who meets the government's lending standards. a private loan is only available for students who show a need. a federal loan is only available for students who show a need. a private loan is available for any student who meets the bank's lending standards. a federal loan can only be used to pay for a student's tuition. a private loan can be used to pay for a student's tuition and any other expenses. a federal loan can be used to pay for a student's tuition and any other expenses. a private loan can only be used to pay for a student's tuition.

Answers: 1

continue

Do you know the correct answer?

Kenji lives in New York City and runs a business that sells guitars. In an average year, he receives...