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Maryann and Don want to open their own deli. To do so, Maryann must give up her job, where she earns $20,000 per year, and Don must give up his part-time job, where he earns $10,000 per year. They must liquidate their money market fund, which earns $1,000 in interest annually. The rent on the building is $10,000 per year, and the expenses of necessities such as utilities, corned beef, and pickles are $35,000 annually. _____ is the explicit cost per year of operating the deli.

Respuesta :

Answer:

$45,000

Explanation:

Given that

Earning per year of Maryann = $20,000

Earning per year of Don = $10,000

Interest earned annually = $1,000

Rent of the building = $10,000

Expenses of necessities = $35,000

So by considering the above information, the explicit cost is

= Rent of the building + Expenses of necessities

= $10,000 + $35,000

= $45,000

This cost are the expenses that are to incurred for business expenses or other any purpose i.e rent, salaries, etc

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