For each one of the costs below, explain whether the resource cost is explicit or implicit, and give the annual opportunity cost for each one. Assume the owner of the business can earn 4.5 percent annually on funds invested.

a. The janitorial service that keeps the companys building clean and sanitary charges the company $2,000 per month, on a month-by-month plan (i.e., no contract is involved). Payment is made at the end of each month, after the janitorial services have been performed.

b. The company uses a custom-made software program to manage its inventory. The owner took $32,000 out of a personal saving account to pay a consulting firm to develop the custom software.

c. The companys delivery truck, which cost $160,000 four years ago, is now worth $125,000. The company paid off its bank loan last year and now owns the delivery truck outright.

d. Rent paid on a Ricoh color printer and scanner is $5,000 per year. This price includes the cost of consumables such as toner cartridges and paper.

e. Office secretarial services cost $38 per hour, which includes the cost of providing benefits (health and dental insurance). The company uses 650 hours of secretarial services annually.