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Ryzard decides to open his own business and earns $60,000 in accounting profit the first year. when deciding to open his own business, he withdrew $20,000 from his savings, which earned 6 percent interest. he also turned down three separate job offers with annual salaries of $30,000, $40,000, and $45,000. what is ryzard's economic profit from running his own business?

Respuesta :

The economic profit earned by Ryzard from running his own business is $13,800.

What is economic profit?

The economic profit is the actual profit that is earned by the business owner after deducting all the costs and expenses from the total amount of revenue earned during the specified period.

Computation:

[tex]\begin{aligned}\text{Economic Profit}&=\text{Accounting Profit}-\text{Saving Interest}-\text{Annual Salary}\\&=\$60,000-(\$20,000\times6\%)-\$45,000\\&=\$60,000-\$1,200-\$45,000\\&=\$13,800\end{aligned}[/tex]

Therefore, total amount of economic profit from the business is $13,800.

Learn more about economic profit, here:

https://brainly.com/question/13016065

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