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Kumar owns a small seafood 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. Kumar could earn $35,000 per year as the manager of a competing seafood restaurant nearby. His total accounting profit last year was:

Respuesta :

TomShelby

Answer:

Accounting proft                             36,000

Explanation:

revenue                                         100,000

rent expense

3,000 x 12 month 36,000

salaries expense

2,000 x 12 month 24,000

other operating expense

500 x 12 month      6,000

Total expenses                               (66,000)

Accounting proft                             36,000

he accounting do not consider the opportunity cost, that would bethe economic profit.

The accounting only recognize accrued expenses, not potencial income.