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Refer to the table below to answer two questions. The table shows the monthly economic profit of a drugstore Total (gross) revenues per month $
Refer to the table below to answer two questions. The table shows the monthly economic profit of a drugstore Total (gross) revenues per month $ 27,000 less explicit costs Cost of merchandise sold $ 17,000 Wages to cashier, stock, and delivery help 2,500 Rent and utilities 800 Taxes 700 Total explicit costs $ 21.000 Accounting profit (revenue minus explicit costs) $ 6,000 less implicit costs: Wages of owner-manager. 300 hours @ $10 per hour $ 3,000 Return on inventory Investment. 10% per year on $120,000 1.000 Total implicit costs $ 4,000 Economic profit (revenue minus all costs) $ 2,000 If the owner of the drugstore hired a manager for $9 an hour to take his place, how much of a change would show up in Instructions: Enter your responses as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. Accounting profits per month? S b. Economic profits per month
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