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1. Kanesha is an entrepreneur and has recently opened her first coffee shop, The Coffee Cat. Kanesha pays $5,000 rent each month, $4,800 for employee
1. Kanesha is an entrepreneur and has recently opened her first coffee shop, The Coffee Cat. Kanesha pays $5,000 rent each month, $4,800 for employee payroll, and $1,200 for supplies. She was planning on selling several of her own tables and chairs on Craigslist for $1,500, but instead she brought them to The Coffee Cat. Additionally, Kanesha quit working as an accountant where she was earning $52,000 per year to open up the shop. If the shop earns $180,000 in revenue this year, calculate the annual: (a) Accounting Profit (b) Economic Profit. (5 points)
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