Laura's Pizza Place Incurs $800,000 Per Year in Explicit Costs

question 48

Multiple Choice

Laura's Pizza Place incurs $800,000 per year in explicit costs and $100,000 in implicit costs.The restaurant earns $1.3 million in revenues.Based on this information,what is accounting profit for Laura's Pizza Place?

• A)$200,000
• B)$400,000
• C)$500,000
• D)$900,000

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Definitions:

Inflation Rate

The rate at which prices for services and goods are increasing overall, leading to a decrease in buying power.

Expected Return

The anticipated return on an investment, considering both the probability and the impact of different outcomes.

Portfolio Standard Deviation

A measure of the volatility of the returns on a portfolio, indicating the portfolio's overall risk level.