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A Business Owner Makes 1000 Items a Day

Question 1

Multiple Choice

A business owner makes 1000 items a day.Each day he/she contributes 8 hours to produce those items.If hired,elsewhere he/she could have earned $250 an hour.The item sells for $15 each.Production does not stop during weekends.If the explicit costs total $150,000 for 30 days,the firm's accounting profit for the month equals:


A) $300,000
B) $60,000
C) $450,000
D) $240,000

Correct Answer:

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