Scenario 8.1: Ana used to work for an advertising agency where she earned a yearly salary of $60,000. She got tired of working for another company and therefore opened her own advertising company. Ana now pays her designer $40,000 per year and spends $25,000 for rent and utilities. She earns $120,000 in annual revenue.
-Refer to Scenario 8.1.Ana's accounting profit is

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Ana's accounting profit is calculated by subtracting her total explicit costs (designer's salary of $40,000 and rent/utilities of $25,000, totaling $65,000) from her annual revenue of $120,000. Therefore, $120,000 - $65,000 = $55,000.