The table below provides the total revenues and costs for a dental practice for one year Total Revenues (5) 950,000 Total Costs (5) Wages and Salaries 600,000 Risk free return of 4% on owner's capital of $1,000,000 40,000 Interest on bank loan 30,000 150,000 10,000 Cost of supplies Depreciation of capital equipment Additional wages the dentist owner could have earned in her next best alternative Risk premium of 5% on the owner's capital of $1,000,000 a. What are the explicit costs for this firm? The explicit costs are: (Type an integer) 0 50,000

The table below provides the total revenues and costs for a dental practice for one year Total Revenues (5) 950,000 Total Costs (5) Wages and Salaries 600,000 Risk free return of 4% on owner's capital of $1,000,000 40,000 Interest on bank loan 30,000 150,000 10,000 Cost of supplies Depreciation of capital equipment Additional wages the dentist owner could have earned in her next best alternative Risk premium of 5% on the owner's capital of $1,000,000 a. What are the explicit costs for this firm? The explicit costs are: (Type an integer) 0 50,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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