Calculate Economic profit and Accounting profit from the figures given below for ABC Company. Total revenue $ 500,000 Wages and salaries $ 40,0000 Forgone salary $ 80,000 Interest paid $ 10,000 Forgone rent $ 10,000 Raw materials $ 50,000 Other payments $ 20,000 Forgone interest $ 7,000
Calculate Economic profit and Accounting profit from the figures given below for ABC Company. Total revenue $ 500,000 Wages and salaries $ 40,0000 Forgone salary $ 80,000 Interest paid $ 10,000 Forgone rent $ 10,000 Raw materials $ 50,000 Other payments $ 20,000 Forgone interest $ 7,000
Chapter23: Profit Maximization
Section: Chapter Questions
Problem 5E
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Calculate Economic profit and Accounting profit from the figures given below for ABC Company.
Total revenue | $ 500,000 |
Wages and salaries | $ 40,0000 |
Forgone salary | $ 80,000 |
Interest paid | $ 10,000 |
Forgone rent | $ 10,000 |
Raw materials | $ 50,000 |
Other payments | $ 20,000 |
Forgone interest | $ 7,000 |
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