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O Levels Economics (2281)•2281/12/M/J/19
Question 15 from 2281/12/M/J/19

Explanation

Total explicit costs include all cash outflows for the business Steps:

  • Add cost of workshop purchase: $20,000
  • Add materials expenditure: $7,000
  • Add total labor payments: $8,000
  • Add cost of two vehicles: 2 × 10,000=10,000 = 10,000=20,000
  • Sum all: 20,000+20,000 + 20,000+7,000 + 8,000+8,000 + 8,000+20,000 = $55,000

Not enough information.

Final answer: Not enough information.

Topic: Firms' costs, revenue and objectives

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