QUESTION 4 120 MARKS) (a) In January 2020, Michael resigned from his job as an engineer and gave up his salary of $175 000 a year. Michael plans to start his own business, ABC company; the company aims to develop and install audio equipment for businesses. The income statement for the first-year operation of ABC company is shown below: CL02 (10 Marks) Revenues: Revenues from sales and products .................................... $970 000 Operating costs and expenses: Cost of products and services sold ................................. $355 000 Selling expenses ......................................................... $155 000 Administrative expenses .................................................... $45 000 Interest expense (bank loan) ................................................... $45 000 Legal expenses ........................................................................... $28 000 Corporate tax payments ......................................................... $165 000 Michael has spent $100 000 of his personal savings to start up the business. He could have earned a 15 percent return from his savings. i. What is the opportunity cost for the business? (2 marks) ii. What is accounting profit? ( 3 marks) iii. What is economic prot? (3 marks) iv. Please evaluate Michael's decision to leave his job to start the business. (2 marks)