Answer:
The accounting profit is $30,000.
Explanation:
The implicit cost of running the restaurant is the opportunity cost of giving up a salary of $40,000 per year working as a chef.
The revenue earned from the restaurant is $100,000.
The explicit costs is
= $50,000 + $20,000
= $70,000
An accountant will consider only the accounting cost or explicit cost in the calculation of profits.
Accounting profit
= Total revenue - Explicit costs
= $100,000 - $70,000
= $30,000
