Question

Walter builds birdhouses. He spends $5 on the materials for each birdhouse. He can build one in 30 minutes. He is semi-retired but earns $8 per hour at the local hardware store. He can sell a birdhouse for $20 each.

An Accountant would calculate the total profit for one birdhouse to be
A) $7
B) $12
C) $11
D) $15

Answer 1

$15

Step-by-step explanation:

Accounting profit is calculated as revenue less total cost.

Accounting profit = Revenue - Cost

$20 - $5 = $15

An accountant calculates accounting profit.