Question

What services were provided to customers on account for $41,000?

1) Sales services
2) Consulting services
3) Maintenance services
4) Other services

Answer 1

The accounting profit for the firm is calculated by deducting explicit costs from total revenues, which, in this case, amounts to $50,000.

Step-by-step explanation:

Understanding Accounting Profit

The question appears to ask about the specific services that provided $41,000 in revenue on account. However, the provided reference information does not directly answer this question but instead gives details on calculating accounting profit for a firm. Based on the reference information, the accounting profit is calculated by subtracting the explicit costs from the total revenues. In the given scenario, the firm had sales revenue of $1 million and incurred explicit costs of $600,000 on labor, $150,000 on capital, and $200,000 on materials. The accounting profit would be:

Total Revenues - (Labor Costs + Capital Costs + Material Costs) = Accounting Profit

$1,000,000 - ($600,000 + $150,000 + $200,000) = $50,000

Therefore, the firm's accounting profit is $50,000.