Question

Luciana is the owner of a nail salon. Last year, her total revenue was $145,000, her rent was $12,000, her labor costs were $65,000, and her overhead expenses were $15,000. From this information, we know that her accounting profit was Group of answer choices
A) $53,000.


B) $65,000


C)$0.


D) $145,000.

Answer 1

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.

Answer 2

The answer would be A.