Until Recently You Worked as an Accountant Earning $60,000 Annually

Multiple Choice

Until recently you worked as an accountant earning $60,000 annually.Then you inherited a piece of commercial real estate bringing in $40,000 rent annually.You decided to leave your job and open a tattoo parlor in the office space you inherited. At the end of the first year,your books showed total revenues of $180,000 and total explicit costs of $90,000 for labor,ink,utilities,taxes,and miscellaneous supplies.Your total cost of doing business during the first year is ______________ and you earned economic profit of ______________.

A) $190,000; -$10,000
B) $90,000; $90,000
C) $130,000; $50,000
D) $150,000; $30,000