Merrilyn Forney is considering starting a delivery service company. She presently makes PHP 800,000 a year as a junior advertising executive and will give up this job if she opens the delivery service company. She plans to start with two motorcycles; hence, if she chooses to establish and operate the delivery service company, her annual cost will be: PHP 400,000 for compensation of drivers;PHP 20,000 for motorcycle maintenance; PHP 5,000 for insurance; PHP 24,000 for fuel; and PHP 6,000 for oil.

Merrilyn Forney is considering starting a delivery service company. She presently makes PHP 800,000 a year as a junior advertising executive and will give up this job if she opens the delivery service company. She plans to start with two motorcycles; hence, if she chooses to establish and operate the delivery service company, her annual cost will be: PHP 400,000 for compensation of drivers;PHP 20,000 for motorcycle maintenance; PHP 5,000 for insurance; PHP 24,000 for fuel; and PHP 6,000 for oil.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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