Bob recently quit a job that paid him $2,500 per month in order to buy a bed and breakfast house in a remote corner of Vancouver Island.The motivation for his life style change came from a surprise inheritance from his long lost uncle who he had never met. His uncle, feeling guilty for never sending "birthday money" to his sister's son, had left Bob $65,000 dollars in his will. Bob's mom told him to put the money in a corporate bond that was paying 9% return annually. Instead Bob decided to "check out" of the busy city life and buy the B&B. For the down payment and renovations, Bob used $50,000 of his inheritance.

It turned out that Bob's remote B&B was much more popular than expected and his two rooms were rented out for a total 425 nights combined between them, in the first 12 months of operation! The nightly rental rate was $200.

Bob paid the following out-of-pocket costs during the first year of operating the bed and breakfast business.

Monthly Interest he pays on a bank loan$2,100

Utility and Maintenance Expenses quarterly$4,140

Property Taxes and Insurance annually$2,210

Food for the year (cheap breakfasts!)$3,000

Part-Time Cleaning Staff monthly$300

Other (supplies, etc.) in total for the year$1,330

Based on your calculation of economic profit in the previous question, would you advise Bob to stay in this business?Explain your answer first considering only the Economic profit/loss calculation. AND then ALSO include a more "common sense" answer considering your calculation in question.