In a given year, a marketing firm has the following costs: $560,000 in wages and salaries paid to employees; $74,000 in rental payments for office space; and $83,000 for office supplies, advertising, and utilities. In addition, Andrew, the owner of the firm, works for the firm full time (and is not paid a salary, since he receives the firm's profits). If he did not work for the marketing firm, Andrew could earn $130,000 per year working as a marketing manager for another firm.

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ewomazinoade ewomazinoade · Answer 1 · 2022-07-06T17:37:13+02:00

Accounting profit when revenue is 700,000 is $-17,000 and economic profit is $-147,000.

Accounting profit when revenue is 750,00 is $33,000 and economic profit is $-97,000

Accounting profit when revenue is 800,000 is $83,000 and economic profit is $-47,000.

Accounting profit when revenue is 850,000 is $133,000 and economic profit is $3000

Accounting profit is total revenue less total explicit cost. Economic profit is accounting profit less implicit cost

Explicit cost = $560,000 + $74,000 + $83,000 =$717,000

Implicit cost = 130,000

Accounting profit when revenue is 700,000: 700,000- 717,000 = $-17,000

Economic profit = $-17,000 - $130,000 = $-147,000

Accounting profit when revenue is 750,000: 750,000- 717,000 = $33,000

Economic profit = $33,000 - $130,000 = $-97,000

Accounting profit when revenue is 800,000: 800,000 - 717,000 = $83,000

Economic profit = $83,000 - $130,000 = $-47,000

Accounting profit when revenue is 850,000: - 717,000 = $133,000

Economic profit = $133,000 - $130,000 = $3000

Here is the complete question:

For each possible amount of total revenue, fill in the accounting profit and economic profit of the marketing firm.

700,000

750,000

800,000

850,000

To learn more about profit, please check: https://brainly.com/question/26181966

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