1. In 2010 Terry Brady, the legendary athlete from Indiana, decided to leave his job as head football coach at Mattoon High School to open Brady Advantage, his own sporting goods store, in Terre Haute. By locating Brady Advantage halfway between St. Louis and Indianapolis, Brady hoped to attract customers from both large metropolitan markets. A partial income statement for Brady Advantage follows Terry Brady's coaching job at Mattoon High paid $45,000 of annual salary and benefits. To get the sporting goods store opened, Brady used $50.000 of his personal savings, which was earning a guaranteed 12 percent annual rate of return Brady opened his store in a building that he owned in Terre Haute. Prior to opening his store, the building was rented for S24,000 per year. 2010 $210,000 Revenues Revenue from sales of goods and services Operating costs and expenses Costs of products and services sold Selling expenses Administrative expenses Total Operating costs & Expenses Income from operations Interest expense (bank loan) Non-recurring expenses to start business Income taxes Net income $82,000 $6,000 $12.000 $100,000 $110,000 $14,000 $8,000 $16.000 $72.000 a) What is accounting profit? (2 Marks) b) What is economic profit? (2 Marks) c) Given your answer in part c, evaluate the owner's decision to leave his job to start his business. (1 Marks)