Andreas Is a Political Consultant with His Own Firm

Multiple Choice

Andreas is a political consultant with his own firm.He travels the country and provides campaign advice for political candidates.Last year,he earned $250,000 in revenue for his services.He pays one employee $50,000 to manage the small office back home and pays $30,000 on rent and utilities for that office.His accountant tells him that if he sold all of the equipment,he could put that money in the bank and earn $3,000 in interest next year.Andreas also has received an offer to teach political science at a college at a salary of $100,000.Andreas's accounting profit is equal to _____,and his economic profit is equal to _____.

A) $175,000;$67,000
B) $170,000;$67,000
C) $200,000;$72,000
D) $170,000;$70,000