Jill Johnson$$s dream was always to open her own pizza restaurant. Finally, she decided to take the

plunge. She quit her job, and took $$20,000$ of her retirement savings to start her restaurant. She leased

space, purchased pizza ovens, hired workers, and started making pizza. Her total sales in year $1$ were

$$160,000.$

Pizza dough, tomato sauce, other ingredients $$20,000$

Wages $48,000$

Interest payments on loan to buy pizza ovens $10,000$

Electricity and other utilities $6,000$

Lease payment for store $24,000$

Foregone salary $30,000$

Foregone interest $3,000$

Depreciation $10,000$

What is her accounting profit? $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

What is her economic profit?

Answer rating: 100% (QA)

To calculate Jill Johnsons accounting profit we need to subtract her total expenses from her total s... View the full answer