got this initial one incorrect Refer to the table below to answer two questions. The table shows the monthly economic profit of a drugstore.Total (gross) revenues per month$27,000less explicit costs:Cost of merchandise sold$ 17,000Wages to cashier, stock, and delivery help2,500Rent and utilities800Тахes700Total explicit costs$21,000Accounting profit (revenue minus explicit costs)$ 6,000less implicit costs:$ 3,000Wages of owner-manager, 300 hours @ $10 per hourReturn on inventory investment, 10% per year on$120,0001,000$ 4,000$ 2,000Total implicit costsEconomic profit (revenue minus all costs) If the owner of the drugstore hired a manager for $10 an hour to take his place, how much of a change would show up in:Instructions: Enter your responses as a whole number. If you are entering any negative numbers be sure to include a negative sign (-)in front of those numbers.a. Accounting profits per month?$ 3,000 8b. Economic profits per month?$ 2000

Explicit expenses are the direct expenses of working a business, for example, expenses of natural…

revenues per month 27,000 costs: erchandise sold $ 17,000 cashier, stock, and delivery help 2,500 utilities 800 700 costs $21,000 profit (revenue minus explicit costs) $ 6,000 costs: pwner-manager, 300 hours @ $10 per hour $ 3,000 inventory investment, 10% per year on 1,000 costs $ 4,000 rofit (revenue minus all costs) $ 2,000

revenues per month 27,000 costs: erchandise sold $ 17,000 cashier, stock, and delivery help 2,500 utilities 800 700 costs $21,000 profit (revenue minus explicit costs) $ 6,000 costs: pwner-manager, 300 hours @ $10 per hour $ 3,000 inventory investment, 10% per year on 1,000 costs $ 4,000 rofit (revenue minus all costs) $ 2,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

got this initial one incorrect

If the owner of the drugstore hired a manager for $10 an hour to take his place, how much of a change would show up in:
Instructions: Enter your responses as a whole number. If you are entering any negative numbers be sure to include a negative sign (-)
in front of those numbers.
a. Accounting profits per month?
$ 3,000 8
b. Economic profits per month?
$ 2000

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