An individual leaves a collegefaculty, where she was earning $80,000 ayear, to begin a new venture. She invests her savings of $38,000, which were earning 6 percent annually. She then spends $18,000 renting officeequipment, hires two students at $18,000 a yeareach, rents office space for $14,000, and has other variable expenses of $35,000. At the end of theyear, her revenues are $250,000.

1.Her accounting profit is $

2.Her economic profit $

.