Back to Assignment Attempts: Keep the Highest:/1 1. Accounting versus economic p
ID: 1174232 • Letter: B
Question
Back to Assignment Attempts: Keep the Highest:/1 1. Accounting versus economic profit tn a given year, a marketing firm has the following costs: $600,000 in wages and salaries paid to employees; $75,000 in rental payments for office space; and $22,000 for office supplies, advertising, and utilities. In addition, Susan, the owner of the firm, works for the firm full time (and is not paid a salary, since she receives the firm's profits). If she did not work for the marketing firm, Susan could earn $120,000 per year working as a marketing manager for another firm. For each possible amount of total revenue, fill in the accounting profit and economic profit of the marketing firm Total Revenue Accounting Profit Economic Profit 700,000 750,000 800,000 850,000 Grade It Now Save & Continue Continue without saving O Type here to searchExplanation / Answer
Accounting profit = Total Revenue-Explicit Costs
Economic profit = Total Revenue-(Explicit Costs+Implicit Costs)
Explicit = Direct paid out costs
Implicit = Opportunity costs
Explicit Costs $
Implicit Costs $
Wages
60000
120000
Rent
75000
Office supplies
22000
Total
157000
120000
Total Revenue
Accounting Profit $
Economic Profit $
700000
543000
423000
750000
593000
473000
800000
643000
523000
850000
693000
573000
Explicit Costs $
Implicit Costs $
Wages
60000
120000
Rent
75000
Office supplies
22000
Total
157000
120000
Total Revenue
Accounting Profit $
Economic Profit $
700000
543000
423000
750000
593000
473000
800000
643000
523000
850000
693000
573000
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