Mike operates a bike retail store and repair shop, Mike's Bikes.
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Part 1
What was the cost of the resources bought by Mike's Bikes in the marketplace last year?
The total cost of the resources that Mike's Bikes bought in the marketplace last year was $
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Part 1
Some data about the firm and industry:
Last year, the market value of the firm's showroom and workshop increased from $600,000 to $675,000; the market value of the inventory of unsold bikes decreased from $400,000 to $320,000; and the market value of the firm's tools remained constant at $5,000.
The firm paid manufacturers $770,000 for bikes.
The cost of electricity and IT services was $25,000.
The wages paid to shop assistants was $50,000.
Mike is the firm's entrepreneur. He also works part-time at a bike manufacturer that pays $40 per hour for 50 weeks a year. The manufacturer wants Mike to work full time, but instead he does repairs at Mike's Bikes for 10 hours a week.