embroidered dog apparel over the Internet. Her annual revenue is $128,000 per year, the explicit costs of her business are $4

Question

LiRa [457]

2 years ago

15

embroidered dog apparel over the Internet. Her annual revenue is $128,000 per year, the explicit costs of her business are $4

2,000, and the opportunity costs of her business are $30,000. What is her accounting profit?

Business

1 answer:

IceJOKER [234] · Answer 1 · 2022-08-29T10:29:38+03:00

Answer:

$86,000

Explanation:

The opportunity cost is an economic concept. It is the cost of the alternative foregone. Accounting profit does not take into cognizance the alternative foregone.

It only considers the explicit cost incurred in the process of making sales or generating revenue.

As such,

Accounting profit = $128,000 - $42,000

= $86,000

embroidered dog apparel over the Internet. Her annual revenue is​ $128,000 per​ year, the explicit costs of her business are​ $4

embroidered dog apparel over the Internet. Her annual revenue is $128,000 per year, the explicit costs of her business are $4