Final answer:
To calculate the firm's accounting profit, subtract total expenses from sales revenue. In this case, the accounting profit is $50,000.
Step-by-step explanation:
To calculate the firm's accounting profit, we subtract total expenses from sales revenue. Total expenses include labor, capital, and materials.
Sales revenue = $1,000,000
Total expenses = Labor + Capital + Materials = $600,000 + $150,000 + $200,000 = $950,000
Accounting profit = Sales revenue - Total expenses = $1,000,000 - $950,000 = $50,000