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

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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 ...

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  • M. Sc., London South Bank University
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