A business owner makes 50 items a day. He spends 8 hours in ...

[SAVANNAHHOOPER23]

A business owner makes 50 items a day. He spends 8 hours in producing those items. If hired elsewhere he could have earned 10 an hour. The item sells for 10 each. Production occurs seven days a week. If the explicit costs total 10,000 a month, the accounting profit for the month equals:
 a. 1,760
 b. 2,240
 c. 11,760
 d. 5,000

Question 2

Accountants and Economists differ in their calculations of profits in that;
 a. economists consider sunk costs
 b. accountants consider implicit costs only
 c. accountants consider explicit costs only
 d. all of the above

[brbarasa]

Answer to Question 1

d

Answer to Question 2

c