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Chyenne runs a small pottery firm. She hires one helper at $15,000 per year, pays annual rent of $800 for her shop, and spends $24,500 per year on materials. She has 542.000 of hIs own funds invested in equipment (pottery wheels, kilns, and so forth) that could earn her $4500 per year if alternatively invested. She has been offered $18,500 per year to work as a potter for a competitor. She estimates her entrepreneurial talents are worth $3500 per year. Total annual revenue from pottery sales is $75,000
Calculate the accounting profit and the economic profit for Chyenne's pottery firm.
Show work and/or describe how you determined your answers.
Calculate the Accounting Profit for Chyenne's pottery firm.
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