Suppose that a small hair styling salon had revenues of $150,000 in a given year. The owner spent $10,000 on utilities, $60,000 on supplies (shampoo, conditioner, hair coloring and other chemicals, etc.), and $50,000 on equipment (mirrors, chairs, scissors, curling irons, etc.), including maintenance. The owner could have earned $50,000 working at another salon. 11) Refer to Scenario 13-22. What is the accounting profit for the hair styling salon?

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Business

Angelina Liu

2 September, 08:38

Suppose that a small hair styling salon had revenues of $150,000 in a given year. The owner spent $10,000 on utilities, $60,000 on supplies (shampoo, conditioner, hair coloring and other chemicals, etc.), and $50,000 on equipment (mirrors, chairs, scissors, curling irons, etc.), including maintenance. The owner could have earned $50,000 working at another salon. 11) Refer to Scenario 13-22. What is the accounting profit for the hair styling salon?

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Shamar Livingston · Answer 1

Given that a small hair styling salon had revenues of $150,000 in a given year. The owner spent $10,000 on utilities, $60,000 on supplies, and $50,000 on equipment, including maintenance. The total profit of the salon should 150,000 - (10,000 + 60,000 + 50,000) = $30,000. The owner could have earned more if he work at another salon.