Donnie's Donuts Incurs $450,000 Per Year in Explicit Costs and $200,000

question 86

Multiple Choice

Donnie's Donuts incurs $450,000 per year in explicit costs and $200,000 in implicit costs.The bakery earns $800,000 in revenues and has $2 million in net worth.Based on this information, what is the accounting profit for Donnie's Donuts?

• A)$150,000
• B)$350,000
• C)$600,000
• D)$1.2 million

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Definitions:

Power Base

The foundation of authority or influence an individual, group, or organization has, often derived from a combination of knowledge, relationships, and resources.

Reward

A benefit, recognition, or compensation given to an individual or group as a return for their performance, achievement, or service.

Coercive

Relating to or using force or threats to persuade someone to do something or comply with one's demands.

Expert

A person who possesses a high level of knowledge, skills, or expertise in a particular field or area.