Suppose you are running a business and incur the following monthly expenses: labor costs are $80,000;...

 

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Suppose you are running a business and incur the following monthly expenses: labor costs are $80,000; raw materials and business supplies are 30,000; equipment leasing expenses are $7,000; finance charges on loans are $3,000. you are not paying rent, because you own the building in which you operate the business. if you had rented it out, however, you would have received $12,000 in rent income. you also estimate the value of your own time to equal $40,000. if the total revenue is $500,000, compute your economic and accounting profit? Suppose you are running a business and incur the following monthly expenses: labor costs are $80,000; raw materials and business supplies are 30,000; equipment leasing expenses are $7,000; finance charges on loans are $3,000. you are not paying rent, because you own the building in which you operate the business. if you had rented it out, however, you would have received $12,000 in rent income. you also estimate the value of your own time to equal $40,000. if the total revenue is $500,000, compute your economic and accounting profit?

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