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Question: In 2007 David Beckham, the famous soccer player from England, decided to leave his job to open Man-U shop , his own sporting goods store, in Thailand. By locating Man-U shop halfway between Central World and Paragon, Beckham hoped to attract customers from both large department stores. A partial income statement for Man-U shop is provided as follows: Beckham was paid $45,000 annual salary as soccer player before he left his job. To get the sporting goods store opened, Beckham used $50,000 of his personal savings, which was earning a guaranteed 12 percent annual rate of return to purchase equipments and products. He opened his store in a building that his wife owned. Prior to opening his store, the building was rented to another shop for $24,000 per year. From the above information, Beckham was wondering whether his decision to open the Man-U shop is correct or not. Please answer the following questions:
a. Calculate the total explicit cost, total implicit cost, total economic cost, and total economic profit for Beckham in opening the Man-U shop.
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