bobby lives in new york and runs a buisness that sells pianos., in an average year he recieves $800,000 from sales on pianos. of this sales revenue he must pay the manufacturer a wholesale cost of $620,000 he also pays wages and utiilty bills totaling $210,000 if he doe not operate this piano business he can work in an accounting firm and recieve an annual salery of $45,000 he owns his showroom if he chooses to rent it out he will recieve $20,000in rent per year.assume that the value of this showroom does not depreciate over the year, no other cost are incurred in running a piano business.
1) what are bobbys implicted cost of selling pianos
a) the salary bobby could ear if he worked in an accounting firm
b) the rental income bobby could recieve if he chose to rent out his showroom
c) the wholesale cost for the pianos that bobby pays the maunfacturer
d) the wayes that bobby pays his employees
2) what is the accounting profile of bobbys piano business
a) $5,000
b) $880,000
c) $15,000
d) $50,000
e)-$15,000 ( $15,000 accounting loss)
3)what is the economic of bobbys piano business
a) $50,000
b)$15,000
c)$880,000
d)$5,000
e)-$15,000
4) taking into account bobbys impict cost of doing business as well as his explict cost if bobbys only goal is to earn as much economic profit as possbile, he _____________( should,Should-not) continue to stay in the piano business