Carol quits her job as a college consultant to start her daycare center.$$ She gave up a salary of $$40,000$ per year.$$ She also invested her savings of $$30,000($which was earning $5$ percent interest$)$ to purchase the equipment needed for the daycare. Please note that the equipment will remain in her business to use for years to come.

In her first year, Carol spent $$18,000$ to rent a building for her daycare center, hired a part$-$time assistant for $$12,000$ and incurred another $$15,000$ for expenses related to supplies, utilities, and insurance. Her total revenue for the first year was $$80,000.$ Identify the explicit and implicit costs of Carol$$s daycare.

Identify the variable and fixed costs for Carol$$s daycare.

What is the amount of her total accounting profit for the first year of her business?

What is the amount of her total economic profit for the first year of her business?

Based on your answers to the first $4$ questions, should Carol keep her daycare open for another year?