cans plc is developing a new form of crinkly can for soft drinks. the crinkly can has grooves in the side which match the size of the finger of the hands. the company research and development department employs 50 people full time and accounts for2percent of the company costs. the dessign manager thinks that it may be important in future to develop special designs for particular commerical customer, even if this involves relatively small production runs and a higher price to the customerfor each can. he said our profit margins are not yet satisfactory. i would like to maintain our existing levels of salesof the standard price, but also take advantage of our design skills and sell additional cans of the new style cans in smaller batches but at a higher prices. explain the further information you would need in order to report on the benefits and problems for creating higher contribution margins and higher profit margin on the basis of the design managers proposals.

Sean lives in dallas and runs a business that sells boats. in an average year, he receives $722,000 from selling boats. of this sales revenue, he must pay the manufacturer a wholesale cost of $422,000; he also pays wages and utility bills totaling $268,000. he owns his showroom; if he chooses to rent it out, he will receive $2,000 in rent per year. assume that the value of this showroom does not depreciate over the year. also, if sean does not operate this boat business, he can work as a paralegal, receive an annual salary of $21,000 with no additional monetary costs, and rent out his showroom at the $2,000 per year rate. no other costs are incurred in running this boat business.identify each of sean's costs in the following table as either an implicit cost or an explicit cost of selling boats.implicit costexplicit costthe wages and utility bills that sean pays the rental income sean could receive if he chose to rent out his showroom the salary sean could earn if he worked as a paralegal the wholesale cost for the boats that sean pays the