Operating Costs Early in 1999, the manager of Farnsworth Laundry Supply Company purchased enough detergent to meet its anticipated demand for three years. It also paid $60,000 in advance for a three-year lease on its storage facility. In 2000, Farnsworth reported sales of soap of

$120,000, labor costs of $30,000, and $90,000 of profit. In computing its profit, has Farnsworth properly considered all of its costs of doing business? Explain what other costs should be considered and how they should be measured.