Happy quit her part-time job as a nurse earning AUD 60,000 per year to start her own food kiosk business. To start the business Happy utilized AUD 50, 000 she was earning from her rental property. Also, Happy used AUD 50,000 she had saved in Commonwealth Bank earning 5% interest per year. Happy's first year business was summarized as follows:

Item

Amount (AUD)

Total Revenue 160,000

Labor cost 100,000

Cost of Materials 25,000

Equipment rental 30,000

a) Use the information provided to answer the following questions

Calculate the business economic profit.

b) Explain whether Happy made the right decision to quit her teaching job.