Answer:
The annual explicit costs for the firm is $310,000.
Explanation:
Explicit cost refers to the cost of the resources purchased by firm from outsiders.
Calculate the annual explicit cost -
Annual explicit cost = Wages and salaries + Materials + New equipment + rented property + interest cost on capital
Annual explicit cost = $150,000 + $75,000 + $30,000 + $20,000 + $35,000
Annual explicit cost = $310,000
Thus,
The annual explicit costs for the firm is $310,000.