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John runs a small bakery in his neighborhood, John's Delightful Bakery. He bakes a variety of delicious pastries and bread, and his business has been

John runs a small bakery in his neighborhood, John's Delightful Bakery. He bakes a variety of delicious pastries and bread, and his business has been quite successful. John used to work as a manager in a nearby restaurant before starting his bakery, and he quit his job to focus on the bakery. His salary was $25,000. To assess the overall performance of his bakery, John meticulously tracks his financials. For the year 2023, John has gathered the following information:

Total revenue from pastry and bread sales: $100,000.

Cost of ingredients and materials: $30,000

Rent for the bakery space: $12,000

Wages paid to his employees: $20,000

Advertising expenses: $5,000

NB

The bakery space could be rented out for $10,000 per year if John did not use it for his bakery.

John invested $40,000 of his personal savings into the bakery when he started it. These savings could have earned him a 5% annual interest in a bank savings account

Calculate John's economic profit for the year 2023

a) $8,000

b) $6,000

c) $4,000

d) =2,000

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