Questions: The following is cost information for the Creamy Crisp Donut Company Entrepreneur's potential earnings as a salaried worker = 48,000 Annual lease on building = 20,000 Annual revenue from operations = 280,000 Payments to workers = 118,000 Utilities (electricity, water, disposal) costs = 8,000 Value of entrepreneur's talent in the next best entrepreneurial activity = 80,000 Entrepreneur's forgone interest on personal funds used to finance the business = 6,000 Creamy Crisp's accounting profit is Multiple Choice 146,000. 0. 280,000. 134,000.

The answer is the last one (D): \$134,000.

To determine Creamy Crisp's accounting profit, we need to calculate the total revenue and subtract the explicit costs. Accounting profit does not consider opportunity costs, only explicit costs.

1. Total Revenue: \$280,000

2. Explicit Costs:

   • Payments to workers: \$118,000
   • Annual lease on building: \$20,000
   • Utilities: \$8,000

   Total explicit costs = \$118,000 + \$20,000 + \$8,000 = \$146,000

3. Accounting Profit:

   • Accounting Profit = Total Revenue - Total Explicit Costs
   • Accounting Profit = \$280,000 - \$146,000 = \$134,000

Now, let's evaluate each option:

• \$146,000: This is the total explicit costs, not the accounting profit.
• \$0: This would imply no profit, which is incorrect based on the given data.
• \$280,000: This is the total revenue, not the profit.
• \$134,000: This is the correct accounting profit after subtracting explicit costs from total revenue.

Therefore, the correct answer is \$134,000.