2. Sunny owns and operates Sunny’s Sno Cone Stand. Use the data in the table provided to answer the questions below.

Sunny’s Sno Cone Stand: January Price of Sno Cone $2 Sno Cones sold 2,000 Explicit cost $400 Depreciation $100 Implicit cost of capital $200

a. Calculate Sunny’s Sno Cone Stand’s total revenue for January.

b. Calculate Sunny’s Sno Cone Stand’s accounting profit for January.

c. What additional information does Sunny need in order to determine whether or not to continue operating the Sno Cone Stand?

d. Suppose these numbers remain unchanged in the long run. Explain how Sunny will determine whether or not to continue operating the business in the long run on the basis of these numbers.