Final answer:
The question seems to require specific details about ARC's contract to provide an accurate amount for a provision, which are not provided. However, based on a general financial example, accounting profit can be calculated by subtracting total expenses from total revenue, which would be $50,000 for a firm with provided figures.
Step-by-step explanation:
To determine Austin Refining Corp.'s (ARC) provision for a contract to purchase crude oil, one should have specific details about the terms of the contract, such as the price per barrel and the total quantity of oil purchased. However, since the information is not provided, we cannot calculate the exact provision for the contract. Instead, we can use the example of a firm's financial calculation to understand the concept of accounting profit.
Accounting profit is calculated by subtracting the total costs from the sales revenue. So, if a firm had sales revenue of $1 million and it spent $600,000 on labor, $150,000 on capital, and $200,000 on materials, the firm's accounting profit would be the revenue subtract the sum of these costs. The calculation would be:
Accounting Profit = Sales Revenue - (Labor Costs + Capital Costs + Material Costs)
Accounting Profit = $1,000,000 - ($600,000 + $150,000 + $200,000)
Accounting Profit = $1,000,000 - $950,000
Accounting Profit = $50,000
Therefore, the firm's accounting profit would be $50,000.