Joe is considering opening an sports training business for elementary aged students. He would quit his job as an assistant high school basketball coach in which he earns $48,000 per year. In addition, he needs to rent a gym, which would cost him $5000 per month in rent and utilities.

In order to buy equipment, he would cash out a fully mature $50,000 bond earning 10% interest each year. Market research indicates that Joe can expect 300 families to pay $20 a month for weekly group training session for their kids:

a. What are Joe's expected ANNUAL accounting profits?

b. What are Joe's expected ANNUAL economic costs? 

c. What are Joe's expected ANNUAL economic profits?

d. Should Joe open the sports training business?