John passes up an offer for a job paying $50,000 a year and, instead, starts his own business. His new business brings in $160,000 in sales during the first year, and his total costs for items such as materials, labor, equipment, shipping, and insurance come to $65,000. John's “accounting” profit and economic profit during the first year are, respectively:
a. $50,000, and $45,000.
b. $110,000, and $95,000.
c. $95,000, and $50,000.
d. $95,000, and $45,000.
e. None of the above is correct