ellie has been working for an engineering firm and earning an annual salary of 80000 she decides to open her own engineering business her annual expenses will be

A $185,700 revenue will yield Ellie's business $50,000 in economic profits.

Explanation:

Here is the complete question :

Ellie has been working for an engineering firm and earning an annual salary of $80,000. She decides to open her own engineering business. Her annual expenses will include $15,000 for office rent, $3,000 for equipment rental, $1,000 for supplies, $1,200 for utilities, and a $35,000 salary for a secretary/bookkeeper. Ellie will cover her start-up expenses by cashing in a $20,000 certificate of deposit on which she was earning annual interest of $500. Which of the following statements is correct?

A $185,700 revenue will yield Ellie's business $50,000 in economic profits. Ellie's annual accounting costs will equal $80,500.

A $185,700 revenue will yield Ellie's business $50,000 in accounting profits. Ellie's annual implicit costs will equal $55,200.

Accounting profit= total revenue - explicit cost

Explicit cost includes the amount expended in running the business.

They include rent , salary and cost of raw materials

Ellie's total explicit cost = office rent + rentals + supply + utilities + salary for a secretary

$15,000 + $3,000 +  $1,000 + $35,000 + $1,200 = $55,200

If revenue is $185,700, accounting profit = $185,700 - $55,200 = $130,500

Economic profit = accounting profit - implicit cost

Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives

Ellie's implicit cost =  $80,000 + $500 = $80,500

Economic profit =  $130,500 -  $80,500 = $50,000