A carpenter produced 200 sofas which he sold at k5000/ sofa, he incurred k5000 on raw materials, he has three labours and he paid k6000 as wages for the three labourers, he does not have a building of his own, and paid k200 as rental fees.
The carpenter decided to get a loan from NATSAVE of k250,000 at the interest rate of 20%. He inputed k2000 in january and k1500 in february.
using the information given above compute;
i. Accounting Profit for the carpenter
ii. Economic profit for the carpenter