At the beginning of the year, a high school football coach decided to leave his job and give up his annual coaching salary of $65,000 and open his own sporting goods store. A partial income statement for follows: To get the sporting goods store opened, the former coach used $80,000 of his personal savings. The coach opened his store in a building that he owns. Prior to opening his store, the building was rented for $31,000 per year. The coach could have earned 5 percent retu
At the beginning of the year, a high school football coach decided to leave his job and give up his annual coaching salary of $65,000 and open his own sporting goods store. A partial income statement for follows:
To get the sporting goods store opened, the former coach used $80,000 of his personal savings. The coach opened his store in a building that he owns. Prior to opening his store, the building was rented for $31,000 per year. The coach could have earned 5 percent
1)The former high school coach incurs $_____ of total explicit costs for using market-supplied resources.
2)The opportunity cost of the owner’s equity capital is $_____ annually.
3)Total implicit cost of owner-supplied resources is $
4)Total economic cost is $_____.
5)Accounting profit is $_____
6)By how much did coach’s wealth change by opening the sporting goods store?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
