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Alex's Law Co. is owned by Alexander Power. For the past year, Alex's Law Co. had the following revenues and costs Revenues $780,000 Office supplies
Alex's Law Co. is owned by Alexander Power. For the past year, Alex's Law Co. had the following revenues and costs Revenues $780,000 Office supplies $19,000 Electricity and water $14,000 Employee salaries $320,000 James's salary $220,000 James has the option of shutting down and renting out the building he owns for $105,000 per year. Additionally, Alexander could go work for a larger law firm for $250,000 per year. What is Alex's Law Co's accounting cost, economic cost, and economic profit, respectively? What would be an optimal decision, shutting down and working forthe larger law firm or staying in the business
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