Michael starts his own business after quitting his job in which he made $75,000. Expenses include $100,000 for wages and salaries, which includes a wage for the owner of $75,000, utilities of $5000, equipment of $50,000, and materials of $40,000. If revenues are $200,000, Michael's accounting and economic profits are respectively
A. -$70,000 and $5,000.
B. $80,000 and $5,000.
C. -$70,000 and -$70,000.
D. $5,000 and $5,000.
Answer: D
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