Arya makes earrings in the shape of the mascot of a local university. Last year, Arya made 250 pairs of earrings, which she sold to the university bookstore for $10 each. Arya works out of her home with material cost of $3 per pair and $85 for tax help. If Arya did not produce earrings, she would spend her time watching television. Based on this information, Arya's explicit cost last year was $835.

Question

Quizplus · Accepted Answer

Explicit costs include direct, out-of-pocket expenses. Arya's explicit costs are the material costs ($3 x 250 pairs = $750) and tax help ($85), totaling $835.

Arya Makes Earrings in the Shape of the Mascot of a Local