An individual leaves a college​ faculty, where she was earning ​$60,000 a​ year, to begin a new venture. She invests her savings of ​$​45,000 which were earning 6 percent annually. She then spends ​$20,000 renting office​ equipment, hires two students at ​$20,000 a year​ each, rents office space for ​$​9,000, and has other variable expenses of ​$42,000. At the end of the​ year, her revenues are ​$250,000