Gomez runs a small pottery firm. He hires one helper at $16,500 per year, pa $22,500 per year on materials. He has $40,000 of his own funds invested in that earn him $5,000 per year if alternatively invested. He has been offered $19,5 estimates he could use his talents to earn an additional $5,500 per year in co annual revenue from pottery sales is $89,000.
Calculate the accounting profit and the economic profit for Gomez.
