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Question - John quit his job at State University where he earned $55,000 a year. He also did some consulting on the side for an additional $15,000 a year. To start the business, he cashed in $100,000 in bonds that had earned 5% interest annually to buy a software company. In the first year, the firm sold 10,000 units of software at $80 for each unit. John's costs of production are, 10,000 for packaging, 100,000 for marketing, 400,000 for employee wages and benefits, and 90,000 for rent on a building.
Refer to the above information. What is John's accounting profit?
a. 100,000.
b. 200,000.
c. 300,000.
d. 400,000.
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