Question 2 Gordon is an artist with monthly salary of $35,000. He is planning to operate a snack shop. He estimates the annual revenue to be $1,250,000. The monthly rent for the snack shop is $40,000. To finance the business, Gordon needs to withdraw $60,000 from his savings account with annual interest of $4,000. He would purchase a blender that costs $8,000 which could be sold at $2,000 and $500 after one year and two years respectively. The monthly food and beverage expenses are $29,000. Calculate the annual accounting profit and annual economic profit of the snack shop in the first year of operations. List all relevant cost items and show working in your calculation. Base on your calculation, what is your recommendation to Gordon? No explanation is needed. (15 marks)