Andrew has been employed as a pharmacist by Boots and earning an annual salary of €80,000. He decides to leaveand open his own independent pharmacy. His annual expenses will include €12,000 for office rent, €1,000 forequipment rental, €50,000 for supplies, €2,000 for utilities, and a €20,000 salary for part-time employee. Andrewwill cover some expenses by using his savings of €20,000 on which he was earning annual interest of €1,000.Annually, Andrew pays himself the difference between revenue and expenses.3. Andrew's implicit cost in the first year of setting up his own practice isA. €80,000B. €81,000C. €101,000D. €186,000E. €1,00044. What revenue would Andrew's business have to earn in the first year for Andrew to be better off by €20,000 relativeto working at Boots?€81,000A.B. €101,000C. €126,000D. €206,000E. €165,000

Implicit cost are the hidden cost which do not appear as cost but they are applicable as cost when…

Answered: and open his own independent pharmacy.…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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