A producer is considering production of mattresses. Following are the costs they face: Fixed costs of factory and equipment (these are contract bound): $400,000. Cost of salary given up as a manager elsewhere (you can't get this job mid-year): $100,000. The factory produces 1,000 mattresses. The variable costs of production are $700,000. Assume the 1,000 mattresses can be sold at a price of $1,200 per mattress. Which of the following is true? The producer makes positive economic profits The producer makes zero economic profits The producer makes negative economic profits The producer makes negative accounting profits