Scenario 13-16
A certain firm produces and sells staplers. Last year, it produced 7,000 staplers and sold each stapler for $6. In producing the 7,000 staplers, it incurred variable costs of $28,000 and a total cost of $45,000.
-Refer to Scenario 13-16.Suppose the owner of the business had an offer to work for another firm for $25,000.The firm's accounting profit for the year was

Question

Quizplus · Accepted Answer

The firm's revenue for the year is 7,000 x $6 = $42,000.
The firm's total variable cost is $28,000. 
The firm's total cost is $45,000.
Therefore, the firm's accounting profit for the year is $42,000 - $45,000 = -$3,000. 
Even if the owner worked for another firm for $25,000, it would not affect the accounting profit of the stapler firm. Thus, the answer is C.

Scenario 13-16 A Certain Firm Produces and Sells Staplers. Last Year, It