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1. Amran plans to retire from his pilot's job to start a full-time business producing carved wooden chairs. He inherits his passion for making chairs
1. Amran plans to retire from his pilot's job to start a full-time business producing carved wooden chairs. He inherits his passion for making chairs from his late father. He has already purchased new equipment costing RM5,000 to manufacture the chairs. He estimates that it will cost RM90 in raw materials (wood, varnish, and so on) to make each chair. He needs to rent an office and manufacturing space, which cost RM2,500 per month for rent and plus another RM500 per month for various utility bills. Amran will perform all of the manufacturing and run the office, and he would like to pay himself a salary of RM6,000 per month during the first year of the business. Amran plans to sell each chair for RM180. He believes that he can produce and sell 150 chairs in the first month, but he is not sure what the sales will be in other months of the year. Nonetheless, he is confident that his chairs will be popular because he started to sell similar chairs as a side income over the last two years. Using the case study technique, advise Amran whether he should continue with this chairs business or not. ( Total / Jumlah: 20 )
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