A woman managing a photocopy establishment for $25,000 per year decides to open her own duplicating place. Her revenue during the first year of operation is $120,000, and her expenses are as follows: Salaries- $45,000, Supplies $15,000, Rent- $10,000, Utilities $1,000, and Interest on bank loan $10,000.
Calculate the
(a) explicit costs
(b) implicit costs
(c) the business profit
(d) economic profit and
(e) normal return on investment in this business