Musashi lives in chicago

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Musashi lives in Chicago and runs a business that sells boats. In an average year, he receives $842,000 from selling boats. Of this sales revenue, he must pay the manufacturer a wholesale cost of $452,000; he also pays wages and utility bills totaling $301,000. He owns his showroom; if he chooses to rent it out, he will receive $38,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Musashi does not operate this boat business, he can work as an accountant and receive an annual salary of $48,000 with no additional monetary costs. No other costs are incurred in running this boat business.
Complete the following table by determining Musashi's accounting and economic profit of his boat business.
Profit
(Dollars)
Accounting Profit
Economic Profit
If Musashi's goal is to maximize his economic profit, he should/ should not stay in the boat business because the economic profit he would earn as an accountant would be $________?

Reference no: EM13498493

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