The following is cost information for the Creamy Crisp Donut Company: Entrepreneur's potential earnings as a salaried worker = $50,000
Annual lease on building = $22,000
Annual revenue from operations = $380,000
Payments to workers = $120,000
Utilities (electricity,water,disposal) costs = $8,000
Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000
Entrepreneur's forgone interest on personal funds used to finance the business = $6,000
Refer to the data.Creamy Crisp's accounting profit is:
A) $150,000.
B) $380,000.
C) $230,000.
D) $294,000.
Correct Answer:
Verified
Q1: Which of the following is most likely
Q4: Suppose that a business incurred implicit costs
Q10: The following is cost information for the
Q82: Normal profit is
A)determined by subtracting implicit costs
Q84: What do wages paid to factory workers,
Q86: Accounting profits are typically
A)greater than economic profits
Q93: Which of the following definitions is correct?
A)Accounting
Q97: Production costs to an economist
A)consist only of
Q99: An explicit cost is
A)omitted when accounting profits
Q100: Accounting profits equal total revenue minus
A)total explicit
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents