An individual leaves a collegefaculty, where she was earning $60,000 ayear, to begin a new venture. She invests her savings of $45,000, which were earning 6 percent annually. She then spends $20,000 renting officeequipment, hires two students at 20,000 a yeareach, rents office space for $12,000, and has other variable expenses of $35,000. At the end of theyear, her revenues are $230,000.

1.Her accounting profit is $

2.Her economic profit is $

.