Question

Calculate accounting profit using the following data: Explicit costs = $40,000 Implicit costs = $20,000 Revenue = $100,000

a) $40,000
b) $60,000
c) $80,000
d) $100,000

Answer 1

The accounting profit can be calculated by subtracting the explicit costs from the revenue. In this case, the accounting profit is $60,000.

Step-by-step explanation:

The accounting profit can be calculated by subtracting the explicit costs from the revenue. In this case, the explicit costs are $40,000 and the revenue is $100,000. So, the accounting profit would be $100,000 - $40,000 = $60,000. Therefore, option b) $60,000 is the correct answer.