Chapter 8: Business Costs and Production e 252-255, 262 8.1. How are profits and losses calculated? Carolina used to work as a teacher, and she would make $4,000 a month. She now owns and runs Carolina's Cupcake Shoppe. In the month of April this year, Carolina spent $1,100 on ingredients (eggs, flour, sugar, etc.) and $400 on utilities (electricity, water, etc.). Her labor costs were $3,000. She owns and uses a storefront for her shop that she previously rented out for $1,500. Lastly, Carolina brought in $10,000 in revenue in April. Based on this information, select whether the following statements are true or false. True Statement(s) Drag appropriate answer(s) here + The storefront rental is an implicit cost. The accounting profit is $4,500. + The total explicit costs are $6,000. Carolina's economic profit is $0, so her shop's bank account remains unchanged. + Ingredients and utilities would be considered variable costs. Drag appropriate answer(s) here False Statement(s)