Questions 21-23 use the following table.

At the beginning of 2021 Tim left his job at Home Depot to start his own business. It was a tough decision, as he was walking away from the $115,000 salary he had been promised for the year. Fortunately, his business did pretty well for a first year, reporting the following expenses and revenues for 2021:

Lumber supplies	$80,000
Building rent	$40,000
Utilities and Insurance	$20,000
Employee Salaries	$150,000
Your own salary	$110,000
Revenues	$400,000

21. Assuming that all expenses except his salary were written as no-recourse one-year contracts at the beginning of 2021, Tim's fixed costs were:

a. $140,000

b. $290,000

c. $400,000

d. $0

22. Tim's economic profit in 2021 was:

a. -75,000

b. $35,000

c. -$5,000

d. $0.

23. Assuming the values and contract-terms of all costs and revenues will be the same in 2022 as in 2021, Tim's fixed costs in 2022 will be:

a. $140,000

b. $290,000

c. $400,000

d. $0