1. PROBLEMSOLVING.Solveforwhatisaskedfor.Usethespaceprovidedforyouranswerandcomplete solution.
2. Lee, a programmer, earned P350,000 in 2010, but in 2011, he began to manufacture computer monitors. After one year, he submitted the following data to hisaccountant.
   • He stopped renting out his cottage for P35,000 a year and used it as hisfactory.
   • The market value of the cottage increased from P700,000 toP710,000.
   • He spent P50,000 on materials, phone, utilities,etc.
   • He leased machines for P100,000 ayear.
   • He paid P150,000 inwages.
   • He used P100,000 from his savings account, which pays five 5% interest ayear.
   • He borrowed P400,000 at 10% a year from thebank.
   • He sold P1,600,000 worth ofmonitors.
   • Normal profit is P250,000 ayear.+

Compute for the following:

• Lee's explicit costs (10points)
• Lee's implicit costs (10points)
• Lee's economic profit (5 points)