Dolores used to work as a high school teacher for $40,000 per year but quit in order to start her own catering business.

Dolores used to work as a high school teacher for $40,000 per year but quit in order to start her own catering business. To invest in her factory, she withdrew $20,000 from her savings, which paid 3 percent interest, and borrowed $30,000 from her uncle, whom she pays 3 percent interest per year. In the first year of its operations of the catering business, she paid $25,000 for ingredients and had revenue of $60,000. Her 1st year economic profits will be (loss) -$5,600