Final answer:
The accounting profit is found by subtracting the total expenses ($950,000) from the total sales revenue ($1,000,000), leading to an accounting profit of $50,000 for Corentine company.
Step-by-step explanation:
To calculate the accounting profit for Corentine company, we will need to subtract the total expenses from the total sales revenue. The given information states that the firm had sales revenue of $1 million last year. The expenses include $600,000 spent on labor, $150,000 on capital, and $200,000 on materials.
Here's how you calculate the profit:
- Total Sales Revenue: $1,000,000
- Total Expenses: Labor ($600,000) + Capital ($150,000) + Materials ($200,000) = $950,000
Accounting Profit = Total Sales Revenue - Total Expenses
= $1,000,000 - $950,000
= $50,000
Therefore, the firm's accounting profit is $50,000.