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Question
A person starts her own business. She quits her $40,000 a year job, rents an office for $15,000 a year, pays wages and salaries of $50,000 a year, utilities of $4,000 a year, and materials of $20,000. She uses her own car for sales work rather than leasing an equivalent car for $6000 a year. If revenues are $140,000, her accounting profit and economic profit are respectively
A) $45,000 and $11,000.
B) $45,000 and $5000.
C) $51,000 and $5000.
D) $51,000 and $45,000.
Answer
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