Brian lives in New York City and runs a business that sells pianos. In an average year, he receives $726,000 from selling pianos. Of this sales revenue,he must pay the manufacturer a wholesale cost of $426,000; he also pays wages and utility bills totaling $264,000. He owns his showroom; if hechooses to rent it out, he will receive $13,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, ifBrian does not operate this piano business, he can work as a paralegal and receive an annual salary of $22,000 with no additional monetary costs. Noother costs are incurred in running this piano business.Identify each of Brian's costs in the following table as either an implicit cost or an explicit cost of selling pianos.Implicit CostExplicit CostThe rental income Brian could receive if he chose to rent out his showroomThe wholesale cost for the pianos that Brian pays the manufacturerThe salary Brian could earn if he worked as a paralegalThe wages and utility bills that Brian paysO o o Complete the following table by determining Brian's accounting and economic profit of his piano business.Profit(Dollars)Accounting ProfitEconomic ProfitAlternatively, the economic profit he would earn as a paralegal would be $If Brian's goal is to maximize his economic profit, hestay in the piano business.

The rental income Brian could.....- implicit cost The wholesale cost for the pianos....- explicit…

Answered: Brian lives in New York City and runs a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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I need help to see if I'm doing this correctly, also what his economic profit is as a financial advisor and if he should stay in the piano business or not. Thank you.
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Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
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