Final answer:
The firm's accounting profit is calculated by subtracting the total expenses from the sales revenue, which in this scenario results in an accounting profit of $50,000.
Step-by-step explanation:
To calculate a firm's accounting profit, you must subtract the total expenses from the firm's sales revenue. In this case, the firm had sales revenue of $1 million. The expenses include $600,000 on labor, $150,000 on capital, and $200,000 on materials, which sum up to a total of $950,000 in expenses. Therefore, the accounting profit is calculated as follows:
Sales Revenue - Total Expenses = Accounting Profit
$1,000,000 - ($600,000 + $150,000 + $200,000) = $1,000,000 - $950,000 = $50,000
The firm's accounting profit would be $50,000.