Sales are budgeted at $350,000. all sales are on account and a provision for bad debts is made for each month at two percent of sales for the month. inventory was $101,000 on april 30; an inventory increase of $14,000 is planned for may 31. all inventory is marked to sell at cost plus 40 percent. estimated cash disbursements for selling and administrative expenses for the month are $65,000. depreciation for may is projected at $7,700. brownsville's budgeted cost of goods sold (cgs) in may is:

Sean lives in dallas and runs a business that sells boats. in an average year, he receives $722,000 from selling boats. of this sales revenue, he must pay the manufacturer a wholesale cost of $422,000; he also pays wages and utility bills totaling $268,000. he owns his showroom; if he chooses to rent it out, he will receive $2,000 in rent per year. assume that the value of this showroom does not depreciate over the year. also, if sean does not operate this boat business, he can work as a paralegal, receive an annual salary of $21,000 with no additional monetary costs, and rent out his showroom at the $2,000 per year rate. no other costs are incurred in running this boat business. identify each of sean's costs in the following table as either an implicit cost or an explicit cost of selling boats. implicit costexplicit costthe wages and utility bills that sean pays the rental income sean could receive if he chose to rent out his showroom the salary sean could earn if he worked as a paralegal the wholesale cost for the boats that sean pays the