Refer to the scenario below to answer the following question.
tom borrowed $40,000 from his parents to open a donut stand. he agrees to pay his parents a 5% yearly return on the money they lent him. his other yearly fixed costs equal $10,000. his variable costs equal $25,000. he sold 40,000 dozen donuts during the year at a price of $2.00 per dozen.
tom's profit is