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An individual leaves a college faculty, where she was earning $45,000 a year, to begin a new venture. She invests her savings of $10,000, which were earning 10 percent annually. She then spends $22,000 renting office equipment, hires two students at $30,000 a year each, rents office space for $14,000 and has other variable expenses of $38,000. At the end of the year, her revenues are $220,000. (4 points) A. What are her accounting profits for the year? B. What are her economic profits for the year? (Be sure and show your work for both questions)
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