3 Suppose a company incurs the following costs: labor, $600; equipment, $300, and materials, $200. The company owns the building.
so it doesn't have to pay the usual $700 in rent.
Instructions: Enter your responses as a whole number.
a. What is the total accounting cost?
66
Ints
$1
b. What is the total economic cost?
eBook
Print
$
Feferences
c. If the company sold the building and then leased it back, what would be the change in
(1) Accounting costs?
$
(ii) Economic costs?
$

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