The market value of the equipment at the end

Reference no: EM13498432

One year ago, Allen and Aimee opened a cheese firm (called ALAM). Use the following information to calculate ALAM's explicit costs and implicit costs during its first year of operation:

a.Allen and Aimee put $70,000 of their own money into the firm.

b.They bought equipment for $40,000.

c.They hired one employee (Josh) to help them for an annual wage of $18,000.

d.Allen gave up his previous job, at which he earned $22,000, and spent all his time working for ALAM.

e.Aimee kept her job, which paid $20 an hour, but gave up 20 hours of leisure each week (for 50 weeks) to work for ALAM.

f.ALAM bought $50,000 of goods from other firms.

g.The market value of the equipment at the end of the year was $37,000.

Reference no: EM13498432

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