Ramen left his job as a doctor and started a restaurant business. He used to earn $200,000 per annum which he left because he didn’t find medicine interesting anymore. In the first year, he has made revenue of $550,000 in revenue.

Since he is new in this business, he had to rent a place and all of the equipment. He rented a small place where he can start off his small food business and he also rented out all the equipment like stoves, utensils, chairs, tables and other things.

He made a scribbled note which looks as follows –

• Wages paid to employees – $100,000
• Food items – $200,000
• Rented place – $50,000
• Rented Equipment – $50,000

Using the information above, you need to find out the accounting profit of Ramen in the first year of his restaurant business. And also calculate economic profit (or loss) due to his decision to start this business.