Ben plays the bassoon in an orchestra for an annual salary of $60,000. He is considering the possibility of quitting his job as a musician and opening Ben’s Bagel Shop instead. Ben estimates that the bagel shop would sell $190,000 worth of bagels per year and incur the following annual costs:

$70,000 for workers (other than himself)

$45,000 for ingredients

$15,000 for building rental

$5,000 for equipment rental

Assume that Ben’s estimates are correct.

a. Calculate the annual accounting profit for Ben’s Bagel Shop.

b. Calculate the annual economic profit for Ben’s Bagel Shop.

c. If Ben’s goal is to earn as much money as possible, should Ben open the bagel shop?

d. The following table provides information on the daily productivity of robots at the Island Bakery.