At the end of 2015, Cindy smith turned down an opportunity to manage Grunge, a clothing store that producers and sells unique shirts. The position has an annual salary of $150,000. Instead, she opened her own store, statements, as a small producer of graphic t-shirts, in the unoccupied lower-half of her duplex. at the beginning of 2016, Cindy decided to use $30,000 from her personal saving which earned 5% in interest, to purchase t-shirt printing machinery and related equipment. The machinery and equipment have a life span of 40 years and her accountant allows to depreciation of the additional machinery. However, for the first 5 years after the purchase date, these machinery and equipment could be returned for a full price reimbursement.

In 2016, Statements sold 16000 t-shirts and received an average price of $25 per t-shirt sold. In the same year, the firm paid out $80,000 for wool and $20,000 for utilities. The firm also paid out $7500 for the lease of a computer and $5000 in interest on a bank loan. Statements employs three workers and paid them a total of $150,000 in salary in 2016.

What is the implicit and opportunity cost of owning and operating Statements' in 2016?