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Business, 12.08.2020 05:01 bry7474

A few years ago, a Professor earning $40,000 at a college quit his job and decided to open his own painting company. He took $50,000 out of his retirement account earning 10% per year. When computing his accounting profit he expensed his one employee for $25,000 and his material costs of $100,000. Suppose he generated $200,000 in sales. Calculate the accounting profit and economic profit for the business.

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