After working for IBM, Ann quits her job in order to open her own consulting business. At the time she left IBM, Ann was earning $50,000 per year. In order to start her business, she withdrew $20,000 from a low-risk account that was earning 5% interest annually. After a year of operations, Ann has the following information regarding costs and revenues.

Revenue= $50,000

Advertising expenses = $7,500

Rent = $12,000

Costs of materials = $2,500

How much is Ann's accounting profit? Note: do not include a $ sign in your answer, just numbers.

Answer rating: 100% (QA)

To calculate Anns accounting profit we first determine her total expenses and then subtract the... View the full answer