Andrew left his role as an economist at the U. S Postal Service where he made $170,000 per year to start his own private economic consulting company. During his first year of private consulting, he made $35,000 in economic profit. If Andrew's clients paid him a total of $400,000 for his consulting services, then what must Andrew's accounting profit be?

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Business

Rose Lewis

16 September, 02:33

Andrew left his role as an economist at the U. S Postal Service where he made $170,000 per year to start his own private economic consulting company. During his first year of private consulting, he made $35,000 in economic profit. If Andrew's clients paid him a total of $400,000 for his consulting services, then what must Andrew's accounting profit be?

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Cherish Herring · Answer 1

Andrew's accounting profit is $205,000.

Explanation:

Earnings of Andrew when he worked as an economist: $170,000 per year

Earnings made in his first year of private consulting: $35,000

Total amount received for consulting services: $400,000

Andrew's accounting profit = $170,000 + $35,000

 Andrew's accounting profit = $205,000