Calculate sallys economic profit and her accounting profit

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Sally owns a ceiling fan company. Last year, she sold 1300 ceiling fans at $60 each, and each fan costs her $30. Before going into the ceiling fan business, she worked as a fan-dancer at $38,000 a year. She used her own money to buy the fans by withdrawing the money from her savings account where it was earning 4 percent annual interest. Calculate Sally’s economic profit and her accounting profit. Should Sally continue with her ceiling fan business? Explain.

Reference no: EM13732424

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