Economic Profits Problem P. J. Goodwrench manages a motorcycle repair shop and earns $45,000 per year. She decides to leave her current job and open and operate her own motorcycle repair shop. She invests $50,000 into the company to start her business, which she takes out of her savings account that was earning 10% interest per year During her first year of operation she expects the following: $300,000 $200,000 $45,000 $15,000 $5,000 Revenue from sales Salaries to hired help Supplies Rent Utilities 1. Calculate expected explicit costs for year one. 2. Calculate expected implicit costs for year one 3. What are expected accounting profits for year one? (Assume no taxes.) 4. What are expected economic profits for year one? (Assume no taxes.) 5. What would be your advice to Ms. Goodwrench