Myron worked at a factory where he earned $20,000 per year.He quit his job and opened a bumper sticker business.After one year,his business earned $60,000 in sales revenue and he incurred $30,000 in direct business expenses.If he received no salary from the new business,what is his accounting profit?
A)$10,000
B)$20,000
C)$40,000
D)$30,000
E)$60,000

Question

Quizplus · Accepted Answer

To calculate accounting profit, we need to subtract total costs (including direct business expenses) from total revenue.

Total revenue = $60,000

Total costs = $30,000

Total revenue - Total costs = $60,000 - $30,000 = $30,000

Myron's accounting profit is $30,000.

Myron Worked at a Factory Where He Earned $20,000 Per