The following is cost information for the Creamy Crisp Donut Company.Entrepreneur's potential earnings as a salaried worker = $50,000 Annual lease on building = $22,000 Annual revenue from operations = $380,000 Payments to workers = $120,000
Utilities (electricity, water, disposal) costs = $8,000
Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000 Entrepreneur's
Forgone interest on personal funds used to finance the business = $6,000
Creamy Crisp's accounting profit is

Question

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Creamy Crisp's accounting profit is $230,000. This is calculated by subtracting the total costs of the business from the total revenue. The total costs are $150,000, which includes the entrepreneur's potential earnings as a salaried worker, the annual lease on the building, payments to workers, utilities costs, and the forgone interest on personal funds used to finance the business. The total revenue is $380,000.

The Following Is Cost Information for the Creamy Crisp Donut