Harvey wanted to start his own business so he quit his job at Winona State University where he earned $98,000 a year. He figured his entrepreneurial talent to be worth $15,000 a year. To start the business, he cashed in $125,000 in bonds that earned 10 percent interest annually to buy a software company, Extreme Gaming. In the first year, the firm sold 6,000 units of software at $50 each. Per-unit costs were $30 for production, packaging, marketing, employee wages and benefits, and rent on a building.

Give the following:

i. Total revenues

ii. Total explicit costs

iii. Total implicit costs

iv. Accounting profits or losses

v. Economic profits or losses

vi. Did Harvey make the right decision?