Answer: $110,000
Explanation:
Accounting profit refers to the Revenue less the explicit expenses which are the actual expenses of the business.
In this scenario, the explicit costs/ expenses are:
= Rent + Wages + Supplies
= 15,000 + 45,000 + 50,000
= $110,000
With explicit costs of $110,000, Candy needs to make higher than this in revenue so that the revenue can cover these costs and then bring in an accounting profit.
