Final answer:
The actual gross profit can be determined by subtracting both the explicit and implicit costs from the total revenues. In this case, the gross profit is -$10,000 per year.
Step-by-step explanation:
The actual gross profit can be determined by subtracting both the explicit and implicit costs from the total revenues. In this case, the explicit costs are $85,000 and the implicit costs are $125,000. So, the calculation would be:
Gross profit = Total revenues - Explicit costs - Implicit costs
Gross profit = $200,000 - $85,000 - $125,000
This results in a gross profit of -$10,000 per year.