Heidi quit her job as a chef making $40,000 per year to start her own restaurant. The first year, Heidi's restaurant earned $100,000 in revenue. Heidi pays $50,000 per year in wages to the waitresses and hostess and $20,000 per year to buy food. What is Heidi's profit as measured by an accountant for the year?

Question

Quizplus · Accepted Answer

An accountant measures profit as total revenue minus explicit costs. Heidi's explicit costs are $50,000 for wages and $20,000 for food, totaling $70,000. Her revenue is $100,000, so her profit is $100,000 - $70,000 = $30,000.

Heidi Quit Her Job as a Chef Making $40,000 Per