Final answer:
To calculate Sam's Bookstore accounting profit for the first quarter, you subtract all explicit costs from total revenues. In the given scenario with a firm's sales revenue of $1 million and explicit costs for labor, capital, and materials totaling $950,000, the accounting profit is $50,000.
Step-by-step explanation:
The content of Sam's Bookstore income statement for the first quarter would typically include various financial elements such as revenues, cost of goods sold (COGS), gross profit, operating expenses, and net income. Nevertheless, the question provided a scenario in which a firm had sales revenue of $1 million, with expenses incurred for labor ($600,000), capital ($150,000), and materials ($200,000). To calculate the firm's accounting profit, you would subtract the total explicit costs from the total revenues. So, the firm's accounting profit for the last year would be:
Accounting Profit Calculation:
- Total revenues: $1,000,000
- Total explicit costs: $600,000 (Labor) + $150,000 (Capital) + $200,000 (Materials) = $950,000
- Accounting profit: $1,000,000 - $950,000 = $50,000
The amount calculated, $50,000, represents the accounting profit after the firm has deducted all the explicit costs associated with the revenue earned.