Total (gross) revenues per month $ 27,000

less explicit costs:

Cost of merchandise sold $ 17,000

Wages to cashier, stock, and delivery help 2,500

Rent and utilities 800

Taxes 700

Total explicit costs $ 21,000

Accounting profit (revenue minus explicit costs) $ 6,000

less implicit costs:

Wages of owner-manager, 300 hours @ $10 per hour $ 3,000

Return on inventory investment, 10% per year on $120,000 1,000

Total implicit costs $ 4,000

Economic profit (revenue minus all costs) $ 2,000

If the owner of the drugstore hired a manager for $15 an hour to take his place, how much of a change would show up in:

Instructions: Enter your responses as a whole number.If you are entering any negative numbers be sure to include a negative sign () in front of those numbers.

a. Accounting profits per month?

$

b. Economic profits per month?

$