ECON-3056EL Lecture 5: Dusick - Assignment 1 - Complete
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Assuming that we are in December 2016, we have the following information about a company that sells shirts and shoes (the data is in thousands of dollars). The company has a second warehouse (B) to save their products. In the Real Estate market, the rental of this store is $900 per month, or what is the same as $10.800 per year. Finally, if the owner wouldnât have inherited this business, he would have earned $25.000 a year as an employee (assume that the owner inherited the company and, therefore, had to give up his job).
Find for each year
a) the explicit cost (explicit cost) and the implicit cost (implicit cost).
2014 | 2015 | 2016 | |
Income from sales of shirts | $120 | $120 | $150 |
Income from sales of shoes | 20 | 20 | 30 |
Income from Warehouse rent (A) | 25 | 25 | 25 |
Maintenance of sewing machines | 20 | 35 | 45 |
Payroll Payments | 50 | 60 | 65 |
Tax Payment | 34 | 35 | 37 |
Bank Tax Payment | 10 | 11 | 12 |