Scenario 13-3
Tony is a wheat farmer,but he also spends part of his day teaching guitar lessons.Due to the popularity of his local country western band,Farmer Tony has more students requesting lessons than he has time for if he is to also maintain his farming business.Farmer Tony charges $25 an hour for his guitar lessons.One spring day,he spends 10 hours in his fields planting $130 worth of seeds on his farm.He expects that the seeds he planted will yield $300 worth of wheat.
-Refer to Scenario 13-3.Tony's accounting profit equals

Question

Quizplus · Accepted Answer

Tony's accounting profit can be calculated by subtracting his expenses from his revenue. 
Revenue from guitar lessons: Unknown 
Expenses for planting seeds: $130 
Expected revenue from wheat: $300 
Total revenue = Revenue from guitar lessons + revenue from wheat = Unknown + $300
Total expenses = $130
Accounting profit = Total revenue - Total expenses 
= (Unknown + $300) - $130 
= Unknown + $170

Therefore, Tony's accounting profit equals $170.

Scenario 13-3 Tony Is a Wheat Farmer,but He Also Spends Part of Part