1.8 The data in the table represents annual costs and revenue for Anna’s Bakery, a bakery specializing in wedding cakes. Anna works 60 hours a week at the store. She also owns the building that houses her business, and if she closed the store, she could rent out the building for

$65,000 per year and go to work for her cross-town rival, Ella’s Sweet Secrets and earn a salary of $22,000 per year. Calculate the economic profit and economic cost for Anna’s Bakery. Are these figures the same as the accounting cost and accounting profit? Explain.

Wages Paid $ 36,000 Interest Paid on Loans 5,000 Other Expenditures for Factors of Production 16,000 Total Revenue 124,000