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Brian lives in Dallas and runs a business that sells boats. In an average year, he receives $851,000 from selling boats. Of this sales
Brian lives in Dallas and runs a business that sells boats. In an average year, he receives $851,000 from selling boats. Of this sales revenue, bemut pay the manufactures a wholesale cost of $476,000; he aho pays wages and utility bills totaling $281,000. He ows his showroom, he chooses to rent it out, he will receive $71,000 in rent per year. Assume that the value of the showroom does not depreciate over the year Ab, &an does not operate this boat business, he can work as an accountant, receive an annual salary of $34,000 with no additional monetary cats, and rest out h showroom at the $71,000 per year rate. No other costs are incurred in running this boat business Identify each of Bran's costs in the following table as either an implicit cost or an explest cost of selling boats The wholesale cost for the boats that Brian pays the manufacturer The salary Brian could earn if he worked as an accountant O Implicit Cost Explicit Cost 0 The ages and utility bills that brian pays 0 The rental income Brian could receive if he chose to rent out his showroom Complete the following table by determining Brian's accounting and economic profit of his boat business Accounting Profit Economic Profit Profit (Dollars)
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