Final answer:
The accounting profit of the firm for the last year was $50,000, calculated by subtracting the total costs of $950,000 from the sales revenue of $1 million. Option 2 is correct answer.
Step-by-step explanation:
To find out how many units of flooring material Jurassic Manufacturers must sell to achieve an operating profit of $10,000, additional data such as the cost per unit and the selling price per unit are required. This information is not provided in the scenario. However, using the information available, we can calculate the firm's accounting profit from the previous year.
Last year, the firm had sales revenue of $1 million. The costs incurred included $600,000 on labor, $150,000 on capital, and $200,000 on materials. The accounting profit is the difference between the sales revenue and these costs.
To calculate the accounting profit, subtract the total costs from the sales revenue:
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- Total costs = Labor + Capital + Materials
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- Total costs = $600,000 + $150,000 + $200,000
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- Total costs = $950,000
Now, subtract the total costs from the sales revenue:
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- Sales Revenue - Total Costs = Accounting Profit
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- $1,000,000 - $950,000 = $50,000
Therefore, the firm's accounting profit for last year was $50,000.