ECONOMICS
PROFIT
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Question
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Sara gives up a job that pays her a yearly salary of $350, 000 in order to open her own business making cakes and other pastries. her business has yearly revenues of $500, 000. She has 5 workers who earn a yearly salary of $20, 000 each. She also rents office space for $2, 000 a month and has materials costs of $26, 000. Based on this information, what are Sara’s yearly accounting and economic profits?
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Her accounting profits are $350, 000 and her economic profits are $0.
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Her economic profits are $350, 000 and her accounting profits are $0.
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Both her accounting and economic profits are $0.
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Her accounting profits are $372, 000 and her economic profits are $22, 000.
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Her accounting profits are $452, 000 and her economic profits are $102, 000.
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Explanation:
There is 1 question to complete.