PROBLEM SOLVING. Solve for what is asked far. Use the space provided for your answer and completesolution.1. Lee, a programmer, earned P350,000 in 2010, but in 2011, he began to manufacture computemonitors. After one year, he submitted the following data to his accountant.• He stopped renting out his cottage for P35,000 a year and used it as his factory.• The market value of the cottage increased from P700,000 to P710,000.• He spent P50,000 on materials, phone, utilities, etc.• He leased machines for P100,000 a year.• He paid P150,000 in wages.• He used P100,000 from his savings account, which pays five 5% interest a year.• He borrowed P400,000 at 10% a year from the bank.• He sold P1,600,000 worth of monitors.• Normal profit is P250,000 a year.Compute for the following:• Lee's explicit costs (• Lee's implicit costs (.• Lee's economic profit

Explicit costs are the payments that are actually made for conducting a business. Implicit costs are…

Answered: PROBLEM SOLVING. Solve for what is…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1-18 Katherine D’Ann is planning to finance her college education by selling programs at the football games for State University. There is a fixed cost of $400 for printing these programs, and the variable cost is $3. There is also a $1,000 fee that is paid to the university for the right to sell these programs. If Katherine was able to sell programs for $5 each, how many would she have to sell in order to break even?
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I asked this question it was not answered and I was charged please issue me a refund and answer this question. Dina is working for a consulting firm making $60,000 per year but considers starting her own consulting company. Dina has determined that to launch the business, she needs to invest $100,000 of her own funds. The annual cost of running the business will include $70,000 for the rent of the office space, $210,000 for employee wages, and $5,000 for materials and utilities. Dina plans to manage the business, which means that she will have to quit her current job. Suppose that the interest rate (or rate of return) on investments in the economy is 6%. Dina's total implicit cost per year is . Dina's total cost per year is .

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