2. Sam quits his job as an airline pilot and opens his own pilot training school. He was earning $40,000 as a pilot. He withdraws $10,000 from his savings where he was earning 5 percent interest and uses the money in his new business. He uses a building he owns as a hangar that he could have rented out for $5,000 per year. He rents a computer for $1,000, buys office supplies for $500, rents an airplane for $6,000, pays $1,000 for fuel and maintenance, and hires one worker for $30,000. Sam's total revenue from pilot training classes equaled $90,000. Calculate

2. Sam quits his job as an airline pilot and opens his own pilot training school. He was earning $40,000 as a pilot. He withdraws $10,000 from his savings where he was earning 5 percent interest and uses the money in his new business. He uses a building he owns as a hangar that he could have rented out for $5,000 per year. He rents a computer for $1,000, buys office supplies for $500, rents an airplane for $6,000, pays $1,000 for fuel and maintenance, and hires one worker for $30,000. Sam's total revenue from pilot training classes equaled $90,000. Calculate

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Mark is currently earning $44,000 a year. He has worked for this firm for 5 years. He is considering a job that will increase his lifetime earnings by $240,000 but that requires a Ph.D. in finance. The job will mean also attending a full-time finance program for four years at an annual cost of $28,500. Mark already completed an MBA, for which he spent $86,000 in tuition and books. Would he take the job and attend the Ph.D. program? Calculate: Insutructions: Use ono decimals. Use commas (30,000, not 30000). Opportunity costs of this decision = $ MC = $ MB = $ Sunk Costs = $
Please provide a correct answer the problem. Attached is the image of the question. Thank you!
Give typing answer with explanation and conclusion
7. After receiving good reviews for her work at a series of art shows, Jean Rodin considers quitting her job as a management consultant to pursue full time her hobby of sculpting. Jean figures that she can sell $100,000 worth her art each year. She found a studio that she can rent for $2,000 per month and know that materials will cost her $20,000 per year. She now earns $90,000 per year. If her calculations are correct, Jean's annual economic profits from the venture will be. a) $80,000 b) $56,000 c) $10,000 d) -$34,000
5. Give an idea of the main costs involved in starting this business; minimum amount of resources need at start-up. a. Describe your income and expenditure flows: b. What ill be your major sources of income? c. What will be your major expenses d. How long do you think it will take for this business to start making profit? e. As part of the work, prepare a poster presentation that captures the key aspect of the entrepreneur, about his/her business, family, what drives him/her (Poster presentation should be creative and attractive)
10. Read this excerpt from the October 18, 2022, Wall Street Journal. KINDERHOOK, N.Y.—Golden Harvest Farms has grown from a small apple-growing operation when Doug Grout’s grandfather opened it after World War II, to a multipronged business that includes a retail stand, cider press, distillery, tasting room and barbecue restaurant. But Mr. Grout said he sees a cloudier future for the business due to new state regulations that will require him to increasingly pay more overtime to the farmworkers who pick his apples in the coming years, raising one of his primary costs. “We were looking to buy another orchard, and that whole thing is tabled,” said Mr. Grout, 52 years old, who co-owns Golden Harvest with his father, as he drove between rows of Honeycrisp trees. “We’re stepping away. You’re going to see farms go out of business. This is very shortsighted.” For the apple market in New York, the new regulations will: Cause supply to shift to the left, leading to higher prices and a…
6
2
Question 8 page 28 Janet spends $20,000 per year on painting supplies and storage space. She recently received two job offers from a famous marketing firm- one offer were for $100,000 per year, and the other was for $90,000. However, she turned both jobs down to continue a painting career. If Janet sells 25 paintings per year at a price of $8,000 each: a. What are her accounting profits? Show your steps leading to your answer b. What are her economic profits? Show your work!
8. Ann and Barbara are computer programmers in Nashville who are planning to move to Seattle. Each owns a house that has been appraised for $100,000. Ann's house is one of hundreds of highly similar houses in large well-known suburban development, and Barbara's is a one of a kind house built from her architects design. Who will benefit more by hiring a realtor to assist in selling her house?
In what ways does Kevin's demand for up-front royalty payments affect Proof's ability to grow organically through revenues ? Kindly put some numbers in your answer as example.
"The four factors of production are needed in an efficient market to provide goods and services at an affordable price at the right time, place and mix,"... "Missing the calibration of these factors can be disastrous for the supplier and consumer." The supplier may face higher costs of production, forcing them to charge a higher price to the consumer or risk going out of business.