Question

Jasper Company has 70% of its sales on credit and 30% on cash. All credit sales are collected in full in the first month following the sale. The company budgets sales of $525,000.

Answer 1

The subject of this question is Business, and it is asking about the accounting profit of a firm. The accounting profit can be calculated by subtracting the total explicit costs from the total revenue.

Step-by-step explanation:

The subject of this question is Business. The question is asking about the accounting profit of a firm based on its sales revenue and expenses. To calculate accounting profit, we subtract the total explicit costs (which include labor, capital, and materials expenses) from the total revenue. In this case, the firm's accounting profit would be $50,000.