Texts: You decide to open your own company, a bakery. You quit your old job that paid you $43,000 per year. You invest $40,000 of your savings that has been earning an interest of $2,000 per year. You decide that your bakery will occupy a space that you own and previously rented out for $10,000 a year. You decide to hire one baker to bake the pastries, and he agrees to work for you for $20,000 a year. After a year in business, you see that your total sales revenue was $200,000, the cost of making the pastries was $50,000, and the cost of utilities was $5,000.
A) What is your accounting profit?
B) What is your economic profit if your entrepreneurial ability would have yielded a profit of $10,000?