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Max Earns a Yearly Salary of $120,000 Per Year from His

Question 2

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Max earns a yearly salary of $120,000 per year from his job and $1,000 per year in interest on his savings. After he quits his job to start a company, he uses all his savings to purchase manufacturing equipment for his company. Given the above information and the data summarizing his first year in business in the table, how much economic profit or loss does Max earn?
Table Revenue  Bills paid for  inputs $300,000$175,000Table\\\begin{array}{|l|l|}\hline \text { Revenue } & \begin{array}{l}\text { Bills paid for } \\\text { inputs }\end{array} \\\hline \$ 300,000 & \$ 175,000 \\\hline\end{array}


A) $4,000
B) $5,000
C) $125,000
D) $126,000

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