Helen has just graduated from SFA with a degree in accounting and received two job offers: one from Deloitte with salary $105,000 per year, and the other from KPMG for $85,000. But Helen rejected both offers and stayed in East Texas to pursue her passion of teaching others to ride horses. She spends $25,000 per year on feed and supplies for her horses. Suppose Helen has 30 clients per year who each pay her $8,000 for a year of ridin lessons. a. What are her accounting profits? b. What are her economic profits?

Helen has just graduated from SFA with a degree in accounting and received two job offers: one from Deloitte with salary $105,000 per year, and the other from KPMG for $85,000. But Helen rejected both offers and stayed in East Texas to pursue her passion of teaching others to ride horses. She spends $25,000 per year on feed and supplies for her horses. Suppose Helen has 30 clients per year who each pay her $8,000 for a year of ridin lessons. a. What are her accounting profits? b. What are her economic profits?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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