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Sarah is a real estate agent who earned $50,000 in 2018. At the beginning of 2019, Sarah wanted to pursue a new career so she
Sarah is a real estate agent who earned $50,000 in 2018.
At the beginning of 2019, Sarah wanted to pursue a new career so she quit her job and opened a yoga studio.
In her first year, she made total revenue of $70,000. Sarah bought equipment for $10,000 using her own money that she had invested at 3% interest. Sarah expected a normal profit of $5,000. Accounting depreciation was $2,000, and overhead costs were $14,000 for the year.
What is Sarah's accounting and economic profit?
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