Elucidate implicit costs and the business profit

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Reference no: EM136778

Q. A woman managing a photocopy establishment for $25,000.00 per year decides to open her own duplicating place. Her revenue during the first year of operation is $120,000.00 and her expenses are as follows:

Salaries to hired help 45,000.00
Supplies 15,000.00
Rent 10,000.00
Utilities 1,000.00
Interest on Bank Loan 10,000.00

Calculate

(a) the explicit costs, (b) the implicit costs, (c) the business profit, (d) the economic profit, and (e) the normal return on investment in this business.

Reference no: EM136778

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