Question

You sell T-shirts at your school’s football games. Each shirt costs $5 to make and sells for $10. In the season you sell 100 shirts. If you weren't selling tickets at the game you could be stuffing the world's best burritos at Red's Phat Burritos, earning $300 during all the games. Your accounting profit is ...

Answer 1

Answer: $500

Explanation:

Accounting profit = Revenue - Cost

Revenue = 100 ×$10 = $1,000

Cost: 100 × $5 = $500

Accounting profit = $1000 - $500 = $500