Calculate the accounting profit and economic profit for each of the following firms (amounts are in millions of dollars). Which answer is correct? Apple BP Tesla Sales $40,091 $5,730 $2,750 Wages and salaries $29,052 $4,932 $500 Cost of equity capital $12,100 $750 $35 Interest on debt $7,585 $275 $5 Cost of materials $6,500 $556 $1,650 Accounting profit Economic profit a. Accounting profit $6,954 $967 $695 Economic profit -$5,146 $217 $660 b. Accounting profit -$3,046 -$33 $595 Economic profit -$15,146 -$783 $560 c. Accounting profit -$15,146 -$783 $560 Economic profit -$3,046 -$33 $595 d. Accounting profit -$3,046 -$33 $595 Economic profit -$5,146 -$283 $1060 e. Accounting profit -$5,146 $217 $660 Economic profit $6,954 $967 $695
QUESTION 18
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Calculate the accounting profit and economic profit for each of the following firms (amounts are in millions of dollars). Which answer is correct?
Apple
BP
Tesla
Sales
$40,091
$5,730
$2,750
Wages and salaries
$29,052
$4,932
$500
Cost of equity capital$12,100
$750
$35
Interest on debt
$7,585
$275
$5
Cost of materials
$6,500
$556
$1,650
Accounting profit
Economic profit
a. Accounting profit
$6,954
$967
$695
Economic profit
-$5,146
$217
$660
b. Accounting profit
-$3,046
-$33
$595
Economic profit
-$15,146
-$783
$560
c. Accounting profit
-$15,146
-$783
$560
Economic profit
-$3,046
-$33
$595
d. Accounting profit
-$3,046
-$33
$595
Economic profit
-$5,146
-$283
$1060
e. Accounting profit
-$5,146
$217
$660
Economic profit
$6,954
$967
$695
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