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

Multiple Choice

(Scenario: Accounting and Economic Profit) Use Scenario: Accounting and Economic Profit.What is the implicit cost of Wang's Wicker Furniture Store? 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) $7,000
B) $60,000
C) $65,000
D) $69,000