Krista sets up a business selling coffee from a coffee cart. She earns $12,000 in revenue a month. She incurs $3000 per month in supplies (coffee cups, creamer, sugar, pastries, napkins, and so on). She used to earn $3500 per month as a barista. The coffee cart is very specialized and has no other uses. What are Krista's explicit costs per month

Her explicit cost is $3000

Explanation:

Explicit costs refers to the actual payments made by the business. They are referred to the actual debits which are placed by the business.

Now, checking the values in the question, we can see that the actual debit made by the business is the costs incurred on those things she uses to make her products. As stated in the question, these includes cost on coffee cups, creamer , sugar , pastries, napkins and so in which exactly is at a value of $3000. This is her explicit cost

you had the wrong answer

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