Scenario 13-7
Wanda owns a lemonade stand. She produces lemonade using five inputs: water, sugar, lemons, paper cups, and labor. Her costs per glass are as follows: $0.01 for water, $0.02 for sugar, $0.03 for lemons, $0.02 for cups, and $0.10 for the opportunity cost of her labor. She can sell 300 glasses for $0.50 each.
-Refer to Scenario 13-7.What are Wanda's total accounting profits?
A) $150
B) $126
C) $96
D) $24

Question

Quizplus · Accepted Answer

To find Wanda's total accounting profit, we need to subtract total costs from total revenue. Total revenue is 300 glasses sold at $0.50 each, which equals $150. Total costs are (0.01 x 300) + (0.02 x 300) + (0.03 x 300) + (0.02 x 300) + (0.10 x 300), which equals $72. Therefore, Wanda's total accounting profit is $150 - $72 = $78. However, the question asks for Wanda's total accounting profits (plural), so we must assume this is over some period of time (e.g. a day, a week, etc.). Without more information, we cannot accurately calculate her total accounting profits for any specific period of time.

Scenario 13-7 Wanda Owns a Lemonade Stand. She Produces Lemonade Using Five