Save Question 17 (1 point) Ralph owns a small pizza restaurant, where he works f

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Save Question 17 (1 point) Ralph owns a small pizza restaurant, where he works full-time in the kitchen. His total revenue last year was $100,000, and his rent was $3,000 per month. He pays his one employee $2,000 per month, and the cost of ingredients and overhead averages $500 per month. Ralph could earn $35,000 per year as the manager of a competing pizza restaurant nearby. His total accounting profit for the year was: A) $72,000. B) $34,000. C) -$1,000. D) $100,000. . Save Question 18 (1 point) Audrey owns a horse ranch. Her total costs are $550,000 per year, and her fixed costs are MacBook Air 44 FT 4

Explanation / Answer

Total cost=rent+wage+overhead charges

TC=3000+2000+500=5,500

TC for the year=5500*12=66,000

Total revenue (TR)=100,000

Accounting profit=TR-TC=100,000-66,000=34,000

Answer-B

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