Suppose Lando Calrissian owns a smuggling business whose total revenue is $30,000 per month. The accompanying table shows Lando's monthly expenses. If Lando weren't a smuggler, he would earn $6,000 per month working for the Rebel Alliance. Apart from pay, Lando is indifferent between working as a smuggler and working for the Rebel Alliance. $$\begin{array} { | l | r | }
\hline \text { Fuel } & \$ 4,000 \
\hline \text { Mairterarce } & \$ 12,000 \
\hline \text { Weapors } & \$ 6,000 \
\hline \text { Bribes } & \$ 3,000
\end{array}$$
What is Lando's accounting profit each month?
A)$1,000
B)$5,000
C)−$1,000
D)−$5,000

Question

Suppose Lando Calrissian owns a smuggling business whose total revenue is $30,000 per month. The accompanying table shows Lando's monthly expenses. If Lando weren't a smuggler, he would earn $6,000 per month working for the Rebel Alliance. Apart from pay, Lando is indifferent between working as a smuggler and working for the Rebel Alliance. $$\begin{array} { | l | r | } 
\hline \text { Fuel } & \$ 4,000 \
\hline \text { Mairterarce } & \$ 12,000 \
\hline \text { Weapors } & \$ 6,000 \
\hline \text { Bribes } & \$ 3,000
\end{array}$$  
What is Lando's accounting profit each month?
A)$1,000
B)$5,000
C)−$1,000
D)−$5,000

Quizplus · Accepted Answer

Accounting profit is calculated by subtracting total expenses from total revenue. Lando's total expenses are $4,000 (Fuel) + $12,000 (Maintenance, assuming "Mairterarce" is a typo) + $6,000 (Weapons, assuming "Weapors" is a typo) + $3,000 (Bribes) = $25,000. Therefore, his accounting profit is $30,000 (total revenue) - $25,000 (total expenses) = $5,000.

Suppose Lando Calrissian Owns a Smuggling Business Whose Total Revenue