An individual leaves a college faculty, where she was earning $45,000 a year, to begin a new venture. she invests her savings of $10,000, which were earning 10 percent annually. she then spends $22,000 renting office equipment, hires two students at $30,000 a year each, rents office space for $14,000 and has other variable expenses of $38,000. at the end of the year, her revenues are $220,000. (4 points) a. what are her accounting profits for the year? b. what are her economic profits for the year? (be sure and show your work for both questions)

a). Her accounting profits=$86,000

b). Her economic profit=$41,000

Explanation:

a). Accounting profit

The accounting profit can be described as the difference between the monetary revenue and the monetary expenses. This can be expressed as;

P=R-E

where;

P=accounting profits

R=monetary revenue

E=monetary costs/expenses

In our case;

Monetary revenue=$220,000

Monetary costs=22,000+(30,000×2)+14,000+38,000=134,000

replacing;

P=(220,000-134,000)=$86,000

Her accounting profits=$86,000

b). Economic profits

The economic profits include the opportunity costs. Economic profits can be expressed as:

Economic profit=Accounting profit-opportunity cost

where;

Accounting profit=$86,000

opportunity cost= $45,000

replacing;

Economic profit=(86,000-45,000)=$41,000

Economic profit=$41,000

answer; operating revenues;

answer: a. the kind of population living in your neighbourhood.

the census explorer data tool by the us census bureau allows the user to zoom in on any neighbourhood within the united states and find the kind of people residing in that by race and age.  

the tool needs to needs to be used twice – once in order to find what type of people reside in a neighbourhood, and then to see the age groups of the people in the same neighbourhood.