You have always wanted to run your own business and make a positive contribution to society. You are a good organizer, and your closest friend is a talented geologist.

You decide to buy a drill-rig truck and subcontract to charities and governments to drill water wells for isolated communities in Australia. The truck will cost $250,000.

You calculate that your other fixed costs include salaries, gas for the truck, and license fees and are estimated to be about $70,000 per year. Variable costs including the cost of drills, pipes, pumps, pressure vessels, bricks, cement, and other construction items will be $8,400. Communities and local authorities will usually assign around

$15,000 per well. Calculate the break-even for your drilling business. After reviewing your break-even, what changes would you consider? Is this the sort of business you want to run? (AACSB: Written and Oral Communication;

Reflective Thinking)