Suppose Winston's Annual Salary as an Accountant Is $60,000,and His

question 137

Multiple Choice

Suppose Winston's annual salary as an accountant is $60,000,and his financial assets generate $4,000 per year in interest.One day,after deciding to be his own boss,he quits his job and uses his financial assets to establish a consulting business,which he runs out of his home.To run the business,he outlays $8,000 in cash to cover all the costs involved with running the business,and earns revenues of $150,000.What are Winston's explicit costs?

• A) $64,000
• B) $72,000
• C) $8,000
• D) $12,000