The following is an income statement for Marie Inc.

Ms.Marie has put $50,000 into the business and she worked a total of 120 hours during the month. Savings accounts are currently paying 3% interest and the going wage rate is $30 per hour.

a) What is the accounting profit?

b) What is the economic profit?

Income Statement Month Ended Sep 30, 2020 Income: Cash Sales $15,000 Expenses: Merchandise $4,000 Rent 750 Insurance 250 Licenses 100 2,000 Tax Remittance Advertising Depreciation 200 700 $8,000