Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

3. The data in the table represents annual costs and revenue for Ted's Vintage Threads, a used clothing store in Key West, Florida. Ted works

image text in transcribed
3. The data in the table represents annual costs and revenue for Ted's Vintage Threads, a used clothing store in Key West, Florida. Ted works 72 hours a week at the store. He also owns the building that houses his business, and if he closed the store, he could rent out the building for $30,000 per year and go to work for his cross-town rival, Cassie's Classic Couture, and earn a salary of $40,000 per year. Wages Paid Interest Paid on Loans Other Expenditures for Factors of Production Total Revenue $25,000 8,000 28,000 120,000 The economic cost for Ted's Vintage Threads is $ (Enter your response as a whole number.) The economic profit for Ted's Vintage Threads is $ negative sign if necessary.) (Enter your response as a whole number and include a Are these figures the same as the accounting cost and accounting profit? Explain. O O O A. No, the accounting profit would be higher since the opportunity cost is not included in the accounting profit. B. No, the accounting profit would be lower since the accounting revenue is lower. C. No, the accounting profit could be lower or higher, since the opportunity cost is not included in the accounting profit. D. No, the accounting profit would be lower since the opportunity cost is not included in the accounting profit O

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Public Sector Audit

Authors: Carolyn J. Cordery, David C. Hay

1st Edition

0367650622, 9780367650629

More Books

Students also viewed these Accounting questions

Question

=+b) In which application is a larger length used?

Answered: 1 week ago