Answer:
accounting cost: 130,000
economic cost: Â 185,000
Explanation:
accounting cost: explicit cost of the business
Jill salary                       40,000
other material and labor cost      70,000
insurance and mortgage payment  20,000
total accounting cost            130,000
Economic cost: explicit cost + implicit cost whic are, the opportunity cost of the factors. cost of the best rejected option
accounting cost: Â 130,000
labor opportunity cost: Â 20,000
difference in salaries between Jill current wage and rejected labor
capital opportunity cost: Â 5,000 interest on saving
rent opportunity cost: 30,000
it would have receive 30,000 while currently receives 0.
total opportunity cost: 55,000
economic cost: 130,000 + 55,000 = 185,000