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What is the economic profit

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Joe wants to start his own business. The business he wants to start will require that he purchase a factory that costs $300,000. To finance this purchase, he will use $100,000 of his own money on which he has been earning 10 percent interest per year. In addition, he will borrow $200,000, and he will pay 12 percent interest per year on that loan. If in the first year of operation the factory produces 5,000 units of a product that sells for $10.00 per unit, what is the economic profit?

Reference no: EM132410731

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