Question 3 Frank was a bricklayer, but a year ago, he decided to start his own business as an outdoor furniture manufacturer. Frank has two sisters: Amy is an accountant and Judith is an economist. Each sister calculates Frank's total cost and prot for the rst year using the following information: {i} Frank took no income {wages} from the rm. He has a standing offer to return to work as a bricklayer for $30,000 per year. (ii) Frank rents the machinery he uses from an equipment rental rm. His annual rent is $9000. {iii} Frank owns the garage that he uses as his factory, but he could rent it out at $3000 per year. {iii} For working capital, Frank used $10,000 of his own money and borrowed another $30,000 at the market rate of interest of 10% per year. {y} Frank employs an assistant at an annual salary of $20,000. {vi} The cost of materials during the first year was $40,000. (vii) Frank's revenue for his rst year was $100,000. {a} What is Frank's prot as calculated by Amy? {b} What is Frank's prot as calculated by Judith? {c} What advice would Judith have for Frank, based on her calculation of Frank's prot. [1.5 + 2.5 + 2 = 6 marks]