Question

You have learned about the importance of oral communication skills to be successful in the real world. This week you will practice your oral communication skills by explaining your answer in Flipgrid to a hypothetical client.

Linda Hamilton, the owner of the SA Manufacturing Co., is concerned that the company's profitability has worsened. She asks you (her accountant) to examine the books and answer some questions. You notice the company's period costs include:
- Tollet paper costs at the factory, $9,000
- Insurance on the company's headquarters, $11,000
-Depreciation of factory lunchroom facilities. $7,000

Answer 1

The subject of this question is Business and the grade level is High School. Accounting profit is the amount of money a firm earns after deducting its explicit costs from its revenue.

Step-by-step explanation:

The subject of this question is Business and the grade level is High School.

Accounting profit is the amount of money a firm earns after deducting its explicit costs from its revenue. In this case, the firm's explicit costs include the toilet paper costs at the factory, insurance on the company's headquarters, and depreciation of factory lunchroom facilities. To calculate the accounting profit, subtract the explicit costs from the company's revenue.

Using the given information, the firm's accounting profit can be calculated as follows:

1. Total explicit costs: $9,000 + $11,000 + $7,000 = $27,000
2. Accounting profit: $1,000,000 - $27,000 = $973,000