The following table shows the annual income statement of Max Computers. Table 8.3

-Refer to Table 8.3.The economic profit of Max Computers is:
A)$1,000 million.
B)-$4,000 million.
C)$10,000 million.
D)-$5,000 million.
E)$5,000 million.

Question

The following table shows the annual income statement of Max Computers. Table 8.3
 
-Refer to Table 8.3.The economic profit of Max Computers is:
A)$1,000 million. 
B)-$4,000 million. 
C)$10,000 million. 
D)-$5,000 million. 
E)$5,000 million.

Quizplus · Accepted Answer

Economic profit is calculated as total revenue minus total costs, including both explicit and implicit costs. The negative value indicates that Max Computers' total costs exceed its total revenue by $4,000 million.

The Following Table Shows the Annual Income Statement of Max