Answer: From this information, we know that her accounting profit was $53,000
Explanation:
Total revenue = $145,000
Rent = $12,000
Labor costs = $65,000
Overhead expenses = $15,000
To calculate the accounting profit, all expenses must be subtracted from the revenue generated.
Total revenue - total expenses = profit.
From the question above, we can deduce that rent, labor cost, and overhead expenses are all expenses.
$145,000 - $12,000 - $65,000 - $15,000 = $53,000.
