Zach took $400,000 out of the bank and used it to start his new cookie business. the bank account pays 3 percent interest per year. during the first year of his business, zach sold 6,000 boxes of cookies for $2.50 per box. also, during the first year, the cookie business incurred costs that required outlays of money amounting to $9,000.

Zach's accounting profit for the year was $6,000.

His economic profit was -$6000

Step-by-step explanation:

Consider the provided information.

During the first year of his business, Zach sold 6,000 boxes of cookies for $2.50 per box.

Therefore the total revenue is

Also, during the first year, the cookie business incurred costs that required outlays of money amounting to $9,000.

Accounting profit = total revenue-explicit costs

                            = $15,000-$9,000 = $6,000

Hence, Zach's accounting profit for the year was $6,000.

Zach took $400,000 out of the bank and bank account pays 3 percent interest per year.

Economic profit = accounting profit-interest on capital invested

                          = $6000-$12000  = -$6000

Hence, his economic profit was -$6000

98%

step-by-step explanation: