Last year, Jarod left a job that pays $50,000 to run his own bike repair shop. Jarod's shop charges $65 for a repair, and last year the shop performed 3,000 repairs. Jarod's production costs for the year included rent, wages, and equipment. Jarod spent $40,000 on rent and $120,000 on wages for his employees. Jarod keeps whatever profit the shop earnsbut does not pay himself an official wage. Jarodused $20,000 of his savings to buy a machine for the business. His savings were earningan annual interest rateof 5 percent.

Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers.

a. What is Jarod's annualaccounting profit?

$

b. What is Jarod's annualeconomic profit?

$