Table 7.1

$$\begin{array} { l r }
\text { Total Revenue } & \$ 100,000 \
\hline \text { Assistant's sal ary } & \$ 20,000 \
\text { Material \& equipment } & \$ 15,000 \
\text { Forgone salary } & \$ 30,000 \
\text { Forgone interest } & \$ 1,000 \
\text { Forgone building rental } & \$ 10,000
\end{array}$$
-Refer to Table 7.1,which shows revenue and cost information for Sally's small business.Sally owns a small business that she operates in a building she owns.Given the information in the table below,Sally's accounting profit is equal to _____
A)$80,000.
B)$50,000.
C)$65,000.
D)$35,000.
E)$24,000.

Question

Table 7.1
​
 $$\begin{array} { l r } 
\text { Total Revenue } & \$ 100,000 \
\hline \text { Assistant's sal ary } & \$ 20,000 \
\text { Material \& equipment } & \$ 15,000 \
\text { Forgone salary } & \$ 30,000 \
\text { Forgone interest } & \$ 1,000 \
\text { Forgone building rental } & \$ 10,000
\end{array}$$
-Refer to Table 7.1,which shows revenue and cost information for Sally's small business.Sally owns a small business that she operates in a building she owns.Given the information in the table below,Sally's accounting profit is equal to _____
A)$80,000.
B)$50,000.
C)$65,000.
D)$35,000.
E)$24,000.

Quizplus · Accepted Answer

Sally's accounting profit is equal to her total revenue minus her explicit costs. Her explicit costs include her assistant's salary ($20,000), material and equipment costs ($15,000), and forgone salary ($30,000), for a total of $65,000. Therefore, her accounting profit is $100,000 - $65,000 = $35,000.

Table 71 ​ -Refer to Table 7

Table 71
-Refer to Table 7