Question

In: Economics

Scenario: Suppose you are earning $57,000 a year as a sales representative for a car dealership...

Scenario: Suppose you are earning $57,000 a year as a sales representative for a car dealership at some point you decide to open a used car dealership to sell used cars. You invest $30,000 of savings that have been earning you $2000 per year. And you decide that your new firm will occupy a parking lot that you own and have been renting out for $6000 per year. You hire one clerk to help you in the store, paying her $38,000 annually and annual utilities $23,000. Include your entrepreneurial talent that is worth $8,00.00. A year after you opened the car dealership, you total up your account and find the following

                        (A) Total Sales Revenue $550,00

                        (B) Cost of Buying Used Cars            $300,00

                       (C) Clark Salaries                                  $38,000

                        (D) Total Utilities $23,000

Refer to the above table, what is the Explicit Cost?

Solutions

Expert Solution

The explicit cost =$97000


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