4) Savannahresigns from her position at Facebook paying 50,000 per year to start a ranch and pig farm.She uses the 100,000 she earned 5% on last year as a capital investment; her first year in business she earns 150,000.

Annual costs were the following:

Rent.25,000

Utilities.12,000

Wages.30,000

Supplies.20,000

A. Calculate Savannah's accounting profit.

B. Calculate Savannah's economicprofit.

Hint: recall that implicit costs are what you give up AND are quantifiable, too.