Question

Benoit, Inc., a manufacturer of plastic​ products, reports the following manufacturing costs and account analysis classification for the year ended December​ 31, 2014. Account Classification Amount

Answer 1

To calculate the firm's accounting profit, subtract the total expenses from the sales revenue. In this case, accounting profit is $50,000.

Step-by-step explanation:

To calculate the firm's accounting profit, we need to subtract the total expenses from the sales revenue. In this case, the total expenses include labor, capital, and materials costs. The formula to calculate accounting profit is:

Accounting Profit = Sales Revenue - Total Expenses

Substituting the given values, the accounting profit can be calculated as:

Accounting Profit = $1,000,000 - ($600,000 + $150,000 + $200,000) = $1,000,000 - $950,000 = $50,000