As a college graduate with a degree in Accounting, you decided to open up your own firm instead of working for someone else. The first year's operating results come in as follow: Total Revenue $=$ $$250,000$ ; Total Variable Costs $=$ $$75,000$ ; Total Fixed Costs $=$ $$25,000.$ Additionally, you figure that have you decided to work for an accounting firm, your annual salary would have been $$120,000.$ Given the data as presented, what is the firm's Accounting Profit?

Answer rating: 100% (QA)

To calculate the firms accounting profit we need to deduct both the total variable c... View the full answer