Answer :
Final answer:
The firm's accounting profit can be calculated by subtracting the total expenses from the sales revenue.
Explanation:
The firm's accounting profit can be calculated by subtracting the total expenses from the sales revenue.
In this case, the sales revenue is $1 million and the total expenses, which include labor, capital, and materials, amount to $950,000 ($600,000 + $150,000 + $200,000). Subtracting the total expenses from the sales revenue gives us an accounting profit of $50,000.
The student's question relates to calculating the gross profit for Macur Inc. Gross profit is determined by subtracting the total expenses from the sales revenue. Given that Macur Inc. had sales of $10,913,300 and total expenses of $10,277,256, the gross profit can be calculated by subtracting the total expenses from the sales:
Gross Profit = Sales - Total Expenses
Gross Profit = $10,913,300 - $10,277,256
Gross Profit = $636,044
Therefore, the gross profit for Macur Inc. during the year was $636,044.
