A young chef is considering opening his own sushi bar. To do so, he would have to quit his current job, which pays $30,000 a year, and take over a restaurant space that he owns and currently rents to his brother for $24,000 a year. His expenses at the sushi bar would be $50,000 for food and $2,000 for gas and electricity. What are his explicit costs?

$106,000

Explanation:

The computation of explicit costs is shown below:-

Implicit costs = Paid amount in a year + Rent amount

= $30,000 + $24,000

= $54,000

Explicit costs = Expenses amount for food + Expenses amount for gas and electricity

= $50,000 + $2,000

= $52,000

Total amount = Implicit costs + Explicit costs

= $54,000 + $52,000

= $106,000

Therefore we have applied the above formula.

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.