CENGAGE | MINDTAP Homework (Ch 13) Q Search 1. Definition of economic costs dy Tools Musashi lives in Philadelphia and runs a business that sells boats. In an average year, he receives $709,000 from selling boats. Of this sales revenue, he must pay the manufacturer a wholesale cost of $409,000, he also pays wages and utility bills totaling $281,000. He owns his showroom, if he chooses to rent it out, he will receive $1,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Musashi does not operate this boat business, he can work as an accountant, receive an annual salary of $29,000 with no additional monetary costs. and rent out his showroom at the $1,000 per year rate. No other costs are incurred in running this boat business. s Tips ss Tips Identify each of Musashi's costs in the following table as either an implicit cost or an expect cost of selling boats YOU Implicit Cost Explicit Cost The wholesale cost for the boats that Musashi as the manufacturer The salary Musash could com if he worked as an accountant The ages and it is that usah pays 0 0 DOO The rental income Musashould receive the chose to rent this showroom ency Fund a Bouw per E. HULI CLONE WICIE W GR. Identify each of Musashi's costs in the following table as either an Implicit cost or an explict cost of selling boats. The wholesale cost for the boats that Musashi pays the manufacturer Implicit Cost Explicit Cost The salary Musashi could eam if he worked as an accountant O The wages and utility bills that Musashi pays The rental income Musashi could receive if he chose to rent out his showroom OOO Complete the following table by determining Must/accounting and economic profit of boat business Profit (Dollars) Accounting Profit Economic Profit Grade i Now saw a continues Save Continue o