a. Explicit costs = $12,000 (Rent/Utilities) + $2,000 (Advertising) + $10,000 (Other operating costs) = $24,000
b. Implicit costs = $45,000 (opportunity cost of working for a steady wage) + $200 (interest that could have been earned) = $45,200
c. Accounting Profit = Revenue - Explicit costs = $100,000 - $24,000 = $76,000
d. Economic Profit = Accounting Profit - Implicit costs = $76,000 - $45,200 = $30,800