Scenario 13-4
Wanda owns a lemonade stand.She produces lemonade using five inputs: water,sugar,lemons,paper cups,and labor.Her costs per glass are as follows: $0.01 for water,$0.02 for sugar,$0.03 for lemons,$0.02 for cups,and $0.10 for the opportunity cost of her labor.She can sell 300 glasses for $0.50 each.
-Refer to Scenario 13-4.What are Wanda's total accounting profits?

Question

Quizplus · Accepted Answer

To calculate the accounting profits, we need to subtract total costs from total revenue. 
Total revenue = 300 glasses x $0.50 = $150 
Total cost = (0.01 x 300) + (0.02 x 300) + (0.03 x 300) + (0.02 x 300) + (0.10 x 300) = $30 
Accounting profit = Total revenue - Total cost = $150 - $30 = $120 
Therefore, Wanda's total accounting profit is $126.

The best choice is B.

Scenario 13-4 Wanda Owns a Lemonade Stand.She Produces Lemonade Using Five Inputs