**Table Cost.1.2**| Description | Amount | Interest Rates ||-------------------------------|---------|----------------|| Loan #1 | $28,000 | 2.40% || Loan #2 | $40,000 | 2.50% || Owner's Last Job Wage | $35,000 | || Labor | $12,000 | || Ingredients | $40,000 | || Rents | $5,000 | || **Total Revenue** | $200,000| |**Question:**According to the information in Table Cost.1.2, accounting profits is about ______.**Options:**- ○ No answer text provided.- ○ $73,328- ○ No answer text provided.- ○ $74,328

The formula is: Accounting profit =total revenue - total explicit cost. total explicit cost=Amount of interest on loans + labor + ingredient +rent =28000*0.024+40000*0.025+12000+40000+5000=58672Accounting profit =200000-58672=141328The accounting profit is $141328. The correct option is 1st or 3rd.

Business

Economics

Interest Table Cost.1.2: Amount Rates Loàn #1 = $28,000 2.40% %3D Loan #2 = $40,000 2.50% %3D Owner's Last Job Wage $35,000 Labor = $12,000 Ingredients = $40,000 %3D Rents = $5,000 Total Revenue = $200,000 %3D According to information in Table Cost.1.2, accounting profits is about O No answer text provided. O $73,328 O No answer text provided. O $74,328

Interest Table Cost.1.2: Amount Rates Loàn #1 = $28,000 2.40% %3D Loan #2 = $40,000 2.50% %3D Owner's Last Job Wage $35,000 Labor = $12,000 Ingredients = $40,000 %3D Rents = $5,000 Total Revenue = $200,000 %3D According to information in Table Cost.1.2, accounting profits is about O No answer text provided. O $73,328 O No answer text provided. O $74,328

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

**Table Cost.1.2**

| Description | Amount | Interest Rates |
|-------------------------------|---------|----------------|
| Loan #1 | $28,000 | 2.40% |
| Loan #2 | $40,000 | 2.50% |
| Owner's Last Job Wage | $35,000 | |
| Labor | $12,000 | |
| Ingredients | $40,000 | |
| Rents | $5,000 | |
| **Total Revenue** | $200,000| |

**Question:**

According to the information in Table Cost.1.2, accounting profits is about ______.

**Options:**

- ○ No answer text provided.
- ○ $73,328
- ○ No answer text provided.
- ○ $74,328

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