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1. A person managing a dry-cleaning store for OMR 25,000 per year decides to open a dry-cleaning store. The revenues of the store during the
1. A person managing a dry-cleaning store for OMR 25,000 per year decides to open a dry-cleaning store. The revenues of the store during the first year of operation are OMR 100,000 and the expenses are OMR 35,000 for salaries, OMR 10,000 for supplies, OMR 8,000 for rent, OMR 2,000 for utilities, and OMR 5,000 for interest on bank loan.
*Calculate:
(a) The accounting profit, (1mark)
(b) The economic profit (2mark)
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