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

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