Gomez runs a small pottery firm. He hires one helper at $12,000 per year, pays annual rent $5,000 for his shop, and spends $20,000 per year on materials. He has $40,000 of his own funds invested in equipment (pottery wheels, kilns, and so forth) that could earn him interest rate 10% annually if alternatively invested. He has been offered $15,000 per year to work as a potter for competitor. Total annual revenue from pottery sales is $72,000.

a. Calculate accounting cost for Gomez pottery firm.

b. Calculate economic cost for Gomez pottery firm.

c. Calculate accounting profit for Gomez pottery firm.

d. Calculate economic profit for Gomez pottery firm.