(Scenario: Accounting and Economic Profit)Use Scenario: Accounting and Economic Profit

Multiple Choice

(Scenario: Accounting and Economic Profit) Use Scenario: Accounting and Economic Profit.The implicit cost of capital for Wang's Wicker Furniture Store is: Scenario: Accounting and Economic Profit
Rather than put the $100,000 that his grandmother left him in a mutual fund that earns 5% each year,Tommy Wang quit his job,which paid $60,000 per year,and started Wang's Wicker Furniture Store.He rented a showroom for $20,000 for the year,purchased $60,000 in wicker furniture,and incurred costs of $40,000 for sales help and advertising.In his first year,his revenue was $150,000.

A) $0.
B) $2,000.
C) $5,000.
D) $50,000.