Wendy Leaves Her Job as a Ballet Dancer to Open

Wendy leaves her job as a ballet dancer to open her own dance studio. As a dancer, she earned $54,000 per year. During the studio's first year of business, Wendy paid $3,000 per year for insurance; $2,500 for music and licensing fees; $750 for equipment; and $15,500 for rent and utilities. She received $85,250 in tuition payments. Wendy's accounting profit is

A) $21,750.
B) $9,500.
C) $63,500.
D) $31,250.