Manuel lives in Philadelphia and runs a business that sells pianos. In an average year, he receives $723,000 from selling pianos. Of this sales revenue, he must pay the manufacturer a wholesale cost of $423,000; he also pays wages and utility bills totaling $267,000. He owns his showroom; if he chooses to rent it out, he will receive $2,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Manuel does not operate this piano business, he can work as a financial advisor and receive an annual salary of $20,000 with no additional monetary costs. No other costs are incurred in running this piano business. Identify each of Manuel's costs in the following table as either an implicit cost or an explicit cost of selling pianos. Implicit Cost Explicit Cost The wholesale cost for the pianos that Manuel pays the manufacturer The rental income Manuel could receive if he chose to rent out his showroom The salary Manuel could earn if he worked as a financial advisor The wages and utility bills that Manuel pays Accounting Profit Economic Profit Complete the following table by determining Manuel's accounting and economic profit of his piano business. Profit (Dollars) Alternatively, the economic profit he would earn as a financial advisor would be $ 33,000 11,000 If Manuel's goal is to maximize his economic profit, he O True False True or false: Manuel is earning a normal profit because his profit is positive. C stay in the piano business. O

Q: How are the current and former CEOS and boards of directerors viewed in the business and/or society…

A: The current and former CEOs and boards of directors at Apple have been viewed with a mix of…

Q: Why is an income statement important for a business?

A: The income statement is a report of a business. It shows how much money the business made and how…

Q: Needed a long self explanatory solution of 200 words for the following question Among the…

A: Apple Inc. is a US company that sells consumer electronics and online services. The company produces…

Q: what are the potential challenges to the non-profit organization’s financial operation

A: Non-profit organizations face unique financial challenges that can impact their ability to fulfill…

Q: Carson used $800 000 of their savings to open a coffee shop. The savings account paid 2% interest.…

A: We know that the economic profit is the difference between the total sales revenue of output and the…

Q: Explain Capital (Ownership) Costs?

A: Costs: The sum of implicit costs and explicit costs constitute the total cost of production. Here…

Q: what steps are necessary to set up a corporation in your California. How do the fees compare with…

A: A corporation is an organization that is authorized separately from the owner.

Q: What is the importance of financila analysis and planning in a business? Include examples

A: Financial analysis is the process of analysing the matters including all kinds of transactions done…

Q: What is Walgreens VRIO Framework?

A: Walgreens VRIO Framework refers to the analysis of the resources and capabilities of Walgreens, a…

Q: What are the advantages of a sole proprietor?

A: A sole proprietor runs his own business on his own and also has total control of the business in his…

Q: Erin's investment account changed by -17% of its value. After this change, the account's value was…

A: To solve for Erin's investment prior to the change, we'll use the formula for percentage change and…