James started a kiosk business in 2021 whose main product was milk. Suppose James started the business from his own premises from which his rental earning was AUD 3,000 per month. The table below represents James' April 2021 business summary:

Item	Cost
1 Milk truck	AUD 40,000
Milk stainless cans	AUD 20,000
Milk cooler	AUD 10,000
2 litre milk packs (Number of packs bought depend on demand. Assume this is the average expenditure per month)	AUD 40,000
Milk production per day 500 litres Note: Assume 56,000 litres are produced per month. Also assume all the milk produced is bought

Use the table to answer the questions below.

1. Calculate James's fixed cost and average fixed cost. (2 Marks)

ANSWER a):

1. Calculate James's variable cost and avarege variable cost. (2 Marks)

ANSWER b):

1. Assume James sells milk at AUD 2 per litre. Calculate John's accounting profit and economic profit for the month of January. (7 Marks)

ANSWER c):