suppose pam owns her own building in chicago, which she could rent for 200000 a year, and used to make 60000 a year managing a bed, bath, and beyond store. she decides to open a surfing store. her yearly sales are 500000, she pays her 2 sales workers 20000 each, she pays 200000 a year for the goods she sells. what are the explicit costs and what is her accounting profit

To calculate the explicit costs and accounting profit, we need to subtract the costs from the revenue.

1. Explicit costs are the direct expenses incurred in running a business. In this case, the explicit costs are:

- Rent: $200,000 per year
- Employee salaries: $20,000 x 2 = $40,000 per year
- Cost of goods sold: $200,000 per year

Hence, the total explicit costs are $200,000 (rent) + $40,000 (employee salaries) + $200,000 (cost of goods sold) = $440,000 per year.

2. Accounting profit is calculated by subtracting explicit costs from revenue.

- Revenue: $500,000 per year
- Explicit costs: $440,000 per year

Accounting profit = Revenue - Explicit costs
Accounting profit = $500,000 - $440,000 = $60,000 per year.

Therefore, the explicit costs are $440,000 per year, and the accounting profit is $60,000 per year.