B4.i Last year, JJ left a job that pays $60,000 to run his own bike-repair shop. J's shop charges $65 for a repair and last year the shop performed 3000 repairs. J's production costs for the year included rent, wages and equipment. J spent $50 000 on rent and $100 000 on wages for his employees. JJ keeps whatever profit the shop earns but does not pay himself an official wage. JJ borrowed $20 000 for the shop's equipment at an annual interest rate of 5 per cent.

B4.i Last year, JJ left a job that pays $60,000 to run his own bike-repair shop. J's shop charges $65 for a repair and last year the shop performed 3000 repairs. J's production costs for the year included rent, wages and equipment. J spent $50 000 on rent and $100 000 on wages for his employees. JJ keeps whatever profit the shop earns but does not pay himself an official wage. JJ borrowed $20 000 for the shop's equipment at an annual interest rate of 5 per cent.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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