Accounting versus economic profit During a particular year, an advertising firm has the following costs: $575,000 in wages and salaries paid to employees; $70,000 in rental payments for office space; and $27,000 for office supplies, advertising, and utilities. In addition, Susan, the owner of the firm, works for the firm full time (and is not paid a salary, since she gets the firm's profit). If she did not work for the advertising firm, Susan could earn $120,000 per year working as an advertising agent for another firm. For each possible amount of total revenue, fill in the accounting profit and economic profit of the advertising firm. Total Revenue ($) Accounting Profit ($) Economic Profit ($) 750,000 800,000 850,000900,000

Answer for the question:

Accounting versus economic profit During a particular year, an advertising firm has the following costs: $575,000 in wages and salaries paid to employees; $70,000 in rental payments for office space; and $27,000 for office supplies, advertising, and utilities. In addition, Susan, the owner of the firm, works for the firm full time (and is not paid a salary, since she gets the firm's profit). If she did not work for the advertising firm, Susan could earn $120,000 per year working as an advertising agent for another firm. For each possible amount of total revenue, fill in the accounting profit and economic profit of the advertising firm. Total Revenue ($) Accounting Profit ($) Economic Profit ($) 750,000 800,000 850,000900,000

Is given in the attachment.

Explanation:

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