A person starts her own business after quitting a job in which she made $75,000 a year. Expenses include $100,000 for wages and salaries, $15,000 for utilities, $150,000 for materials and supplies, and $5000 for gasoline. She uses her own car in her work, for which she paid $16,000 two years earlier. She could rent the car for $5,000 a year. Explicit costs are
a. $195,000
b. $275,000
c. $270,000
d. $286,000
Using the information below, calculate gross profit for the period: Beginning Raw Materials Inventory$25,000 Ending Raw Materials Inventory 30,000 Beginning Work in Process Inventory 55,000 Ending Work in Process Inventory 64,000 Beginning Finished Goods Inventory 80,000 Ending Finished Goods Inventory 67,000 Cost of Goods Sold for the period 540,000 Sales revenues for the period 1,254,000 Operating expenses for the period 232,000
