Hubert lives in Calgary and runs a business that sells guitars. In an average year, he receives

$723,000

from selling guitars. Of this sales revenue, he must pay the manufacturer a wholesale cost of

$423,000

; he also pays wages and utility bills totalling

$267,000

. He owns his show room; if he chooses to rent it out, he will receive

$2,000

in rent per year. Assume that the value of this show room does not depreciate over the year. Also, if Hubert does not operate this guitar business, he can work as a financial advisor, receive an annual salary of

$20,000

with no additional monetary costs, and rent out his show room at the

$2,000

per year rate. No other costs are incurred in running this guitar business.\ Identify each of Hubert's costs in the following table as either an implicit cost or an explicit cost of selling guitars.\ \\\\table[[The wholesale cost for the guitars that Hubert pays the manufacturer],[The rental income Hubert could receive if he chose to rent out his show room],[The salary Hubert could earn if he worked as a financial advisor],[The wages and utility bills that Hubert pays]]\ Complete the following table by determining Hubert's accounting and economic profit of his guitar business.\ Profit\ (Dollars)\ Accounting Profit\ Economic Profit

Hubert lives in Calgary and runs a business that sells guitars. In an average year, he receives $723,000 from selling guitars. Of this sales revenue, he must pay the manufacturer a wholesale cost of $423,000; he also pays wages and utility bills totalling $267,000. He owns his show room; if he chooses to rent it out, he will receive $2,000 in rent per year. Assume that the value of this show room does not depreciate over the year. Also, if Hubert does not operate this guitar business, he can work as a financial advisor, receive an annual salary of $20,000 with no additional monetary costs, and rent out his show room at the $2,000 per year rate. No other costs are incurred in running this guitar business. Identify each of Hubert's costs in the following table as either an implicit cost or an explicit cost of selling guitars. Complete the following table by determining Hubert's accounting and economic profit of his guitar business