Kumar owns a small seafood restaurant,where he works full-time in the kitchen.His total revenue last year was $100,000,and his rent was $3,000 per month.He pays his one employee $2,000 per month,and the cost of ingredients and overhead averages $500 per month.Kumar could earn $35,000 per year as the manager of a competing seafood restaurant nearby.His total accounting profit last year was

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Kumar's total expenses are $3,000 (rent) + $2,000 (employee) + $500 (ingredients/overhead) = $5,500 per month, or $66,000 per year. His accounting profit is $100,000 (revenue) - $66,000 (expenses) = $34,000.

Kumar Owns a Small Seafood Restaurant,where He Works Full-Time in the Kitchen.His