Employee A gave up a salary of $175,000 per year to start a business. Below is a partial income statement

Revenue from sales of product and services... 970,000
Operating cost and expenses
Cost of product and services sold... 355,000
Selling expenses... 155,000
Administrative expenses... 45,000
Total Operating cost and expenses.. . 555,000

Income from operations... 415,000
Interest expense (bank loan)... 45,000
Legal expenses to start business... 28,000
Income taxes... 165,000

Net Income... 177,000

Additionally:

Owner spent $100,000 of personal savings to pay for some capital equipment He could have earned 15 percent return by investing in stocks of other businesses

Questions:

1. What are the total explicit, total implicit and total economic costs in 2007
2. What is the accounting profit for 2007
3. What is the economic profit in 2007?

If you showed half as much effort in trying to find the answers as you did in copying your homework into this forum, you'd be valedictorian. Please remind yourself of the reason you're going to school in the first place--it's to better yourself and add value to society in the future. You can't do that by having others do your work for you your whole life.