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 1 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 university 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