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    Calculate Both the Accounting Profit and the Economic Profit

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    Given the following data please calculate both the accounting profit and the economic profit.

    Sales = $500
    Cost of Goods Sold = $350
    General & Administrative = $100
    The Opportunity cost of the two owners foregoing their salaries estimated at $50K each.

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    QUESTION

    Given the following data please calculate both the accounting profit and the economic profit.

    Sales = $500
    Cost of Goods Sold = $350
    General & Administrative = $100
    The Opportunity cost of the ...

    Solution Summary

    The solution calculates both the accounting profit and the economic profit.

    $2.19

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