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How To Calculate Accounting Profit?

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John Adams Profile
John Adams answered
There are many methods to use. Depends on the costing mode of stock you are using.
The general one is:
Gross Profit= Sales- Cost of sales
Net Profit= Gross Profit + Other Income - All Expenses
Anonymous Profile
Anonymous answered
YOU THINK THAT YOU WILL BE ABLE TO MOW 20 LAWNS PER WEEK CHARGING $100 PER WEEK.  YOU ESTIMATE THAT YOU WILL BE ABLE TO 12 WEEKS TOTAL.  YOU WILL have to pay $3000 for renting the lawn mower, $2500 insurance and overhead production and $20 for gas PER lawn.  You turn down a 12 week paid internship paying $12000 to run the business.

A. Calculate you accounting profits from the business
B. Calculate your economic profits from the business

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