arney decides to quit his job as a corporate accountant, which pays $16,000 a month, and goes into business for himself as a certified public accountant.

He runs his business from his converted garage apartment, which he could rent out for $320 a month if he wasnt using it as a home office. He must purchase office supplies worth $70 a month, and his monthly electricity bill has increased by $50 now that he is working out of his home office.

After six months of working from home, Barney has earned an average of $18,000 per month.

Instructions: Enter your answers as a whole number.

a. What are Barneys average monthly accounting profits?

$

b. What are Barneys average monthly economic profits?

$