Davy's doggie daycare rents a warehouse and field for $2,000 a month to house its boarding pooches. farmer fred owns the property, he used to use it for farming and made $3,000 a month, but has since retired. what is the cost of the warehouse and field to davy?

Question

Derek Hicks

Business

6 April, 00:03

Davy's doggie daycare rents a warehouse and field for $2,000 a month to house its boarding pooches. farmer fred owns the property, he used to use it for farming and made $3,000 a month, but has since retired. what is the cost of the warehouse and field to davy?

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Makaila Ware · Answer 1

Because Davy's warehouse is an explicit cost, the cost of the warehouse and field o Davy is $2,000. An explicit cost is a direct cost to someone during the time he ran the business. Each month Davy would rent the warehouse and field for $2,000 so that someone could run a business making it an explicit cost.