Last year, Jarod left a job that pays $80,000 to run his own bike repair shop. Jarod shop charges $65 for a repair, and last year the shop performed 4,000 repairs. Jarod production costs for the year included rent, wages, and equipment. Jarod spent $60,000 on rent and $120,000 on wages for his employees. Jarod keeps whatever profit the shop earns but does not pay himself an official wage. Jarod used $25,000 of his savings to buy a machine for the business. His savings were earning an annual interest rate of 6 percent. Instructions:
Round your answers to the nearest dollar and include a negative sign if appropriate.
What is Jarod's accounting profit? $
What is Jarod's economic profit? $