2. Based on the information below, (A) calculate the accounting profit, (B) the economic profit, and...

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2. Based on the information below, (A) calculate the accounting profit, (B) the economic profit, and (C) explain if this enterprise was worth the endeavor for the investor/business person. Total Revenue: $225,000 Lost salary from previous job: $100,000 Material purchases: $40,000 $100,000 Loan to business using owner's funds that would yield 12% Insurance payments: $10,000 Use of owners' warehouse that would yield $25,000 in rent Business salaries and wages: $40,000 2. Based on the information below, (A) calculate the accounting profit, (B) the economic profit, and (C) explain if this enterprise was worth the endeavor for the investor/business person. Total Revenue: $225,000 Lost salary from previous job: $100,000 Material purchases: $40,000 $100,000 Loan to business using owner's funds that would yield 12% Insurance payments: $10,000 Use of owners' warehouse that would yield $25,000 in rent Business salaries and wages: $40,000

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Okay lets go through this stepbystep A Calculating the Accounting Profit Accounting profit is the di... View the full answer