Last year, Jarod left a job that pays $60,000 to run his own bike repair shop. Jarods shop charges $75 for a repair, and last year the shop performed 3,000 repairs. Jarods production costs for the year included rent, wages, and equipment. Jarod spent $50,000 on rent and $120,000 on wages for his employees. Jarod keeps whatever profit the shop earns but does not pay himself an official wage. Jarod used $20,000 of his savings to buy a machine for the business. His savings were earning an annual interest rate of 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 Jarods annual accounting profit?

$

b. What is Jarods annual economic profit?

$