Tanesha sells homemade candles over the Internet.Her annual revenue is $64,000 per year, the explicit costs of her business are $17,000, and the opportunity costs of her business are $22,000.What is her accounting profit?

Question

Quizplus · Accepted Answer

Accounting profit is calculated by subtracting the explicit costs from the revenue. Therefore, Tanesha's accounting profit is $64,000 - $17,000 = $47,000. The opportunity costs are not included in the accounting profit calculation.

Tanesha Sells Homemade Candles Over the Internet