Business, 25.02.2020 04:31 Kadyn5

Darnell lives in Dallas 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 Darnell 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. 1. The wages and utility bills that Darnell pays. 2. The rental income Darnell could receive if he chose to rent out his showroom. 3. The salary Darnell could earn if he worked as a financial advisor. 4. The wholesale cost for the guitars that Darnell pays the manufacturer.

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 00:00

Choose the list of the best uses for word processing software. lists, resumes, writing a book, and payroll data letters to your friends, resumes, spreadsheets, and school papers resumes, cover letters, databases, and crossword puzzles book reports, letters to your friends, resumes, and contracts

Answers: 2

Answer

Business, 22.06.2019 01:30

Iam trying to get more members on my blog. how do i do this?

Answers: 3

Answer

Business, 22.06.2019 05:30

Find a company that has followed a strong strategic direction- state that generic strategy and the back-up points to support your position.

Answers: 1

Answer

Business, 22.06.2019 07:40

Xyz corporation has provided the following data concerning manufacturing overhead for july: actual manufacturing overhead incurred $ 69,000 manufacturing overhead applied to work in process $ 79,000 the company's cost of goods sold was $243,000 prior to closing out its manufacturing overhead account. the company closes out its manufacturing overhead account to cost of goods sold. which of the following statements is true? multiple choice manufacturing overhead was overapplied by $10,000; cost of goods sold after closing out the manufacturing overhead account is $253,000 manufacturing overhead was underapplied by $10,000; cost of goods sold after closing out the manufacturing overhead account is $233,000 manufacturing overhead was underapplied by $10,000; cost of goods sold after closing out the manufacturing overhead account is $253,000 manufacturing overhead was overapplied by $10,000; cost of goods sold after closing out the manufacturing overhead account is $233,000

Answers: 1

Answer

You know the right answer?

Darnell lives in Dallas and runs a business that sells guitars. In an average year, he receives $704...

Questions