Jake sells Star Wars memorabilia on eBay. His annual revenue is $42,000 per year, and the explicit costs of his business are $10,000. What is his accounting profit?

Name: Jake sells Star Wars memorabilia on eBay. His annual revenue is $42,000 per year, and the explicit costs of his business are $10,000. What is his accounting profit?
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Question

Quizplus · Accepted Answer

Accounting profit is calculated by subtracting the explicit costs from the total revenue. In this case, $42,000 (annual revenue) - $10,000 (explicit costs) = $32,000.

Jake Sells Star Wars Memorabilia on EBay