3.6 In addition to its namesake cupcake, Hostess Brands produces Twinkies. Huge mixingbaking-

cooling-wrapping machines produce both these products in Hostess Brands’ factory in Emporia, Kansas. These machines mix the batter for each of the products, pour the batter into pans, and move the pans into long, winding ovens where they are baked and then into equally long, winding tunnels where they are cooled. Before wrapping them, the machines finish the tasty treats by injecting filling into them and applying any necessary topping. The machines even automatically clean the baking pans! Which of the following are explicit costs for Hostess Brands, which are implicit costs, and which are not costs at all? Explain each of your answers.

a. The cost of the electricity used to run the production machines

b. The salary paid to the night-shift manager

c. The wear on the machines as they are used

d. The price paid for the paper used to wrap the products

e. The fixed lease payments made on the factory