1. Sam quit his job as an accountant with We Keep Books Accurately to open his own accounting firm. He earned $40,000 with the accounting firm We Keep Books Accurately. During the current year, Sam had revenues of $190,000 and total expenses of $110,000. Sam earned an

accounting profit of $40,000.

accounting profit of $80,000 and an entrepreneurial profit of $40,000.

entrepreneurial profit of $80,000, and an accounting profit of $40,000.

entrepreneurial profit of $80,000.

Cannot tell with the information provided.

2. The basic formula for calculating break even is

		FC/(P-VC).
		FC/(VC-P).
		P/(FC-VC).
		VC/(FC-P).
		VC/(P-FC).