Veruca Sells Therapeutic Bath Salts on the Internet

question 32

Multiple Choice

Veruca sells therapeutic bath salts on the Internet.Her annual revenue is $52,000 per year,the explicit costs of her business are $14,000,and the opportunity costs of her business are $17,000 per year.What are the implicit costs of her business?

• A)$14,000
• B)$17,000
• C)$21,000
• D)$31,000

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Definitions:

Accessories Segment

A part of a business that focuses on products that are meant to complement the main product offerings, often enhancing the user experience.

Fixed Expenses

Costs that do not change with the level of output or activity within a certain period.

Break-Even

The point at which total revenues equal total costs, meaning there is neither profit nor loss.

Sales Dollars

The total monetary value of all sales transactions made by a company within a given period.