Answered step by step
Verified Expert Solution
Question
1 Approved Answer
submit the answer and then watch the video feedback. Suppose in one year Leo's Lemonade Stand sells 5,000 cups of lemonade at a price of
submit the answer and then watch the video feedback. Suppose in one year Leo's Lemonade Stand sells 5,000 cups of lemonade at a price of $0.25 per cup. Leo incurs the following costs for the year: cups: $40 sugar: $20 lemons: $150 water: $75 wages for Linda (the friend Leo hires to help him): $400 Recall Leo also uses $100 from his savings account to buy materials to build the stand. He forgoes $5 in interest income that he could have earned if he had left the money in his savings account. Leo could have spent 30 hours mowing lawns at a rate of $15 per hour if he had not been working at his lemonade stand. Leo's economic profit is ______ and his accounting profit is _________. a. $10; $465 b. $465; $10 c. $110; $565 d. $445; $465
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started