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Bian was working as a crane operator, and she earned an annual income of $150,000. She had savings of $400,000 in the bank, which was
Bian was working as a crane operator, and she earned an annual income of $150,000.
She had savings of $400,000 in the bank, which was earning 2% interest per year.
Then she decided to quit and start her own gardening store business.
She uses her $400,000 savings to purchase a bus for transporting her clients.
The values for her first year with her new business are:
Revenue | 210,000 |
Wages for employees | 89,000 |
Insurance | 1500 |
Equipment and supplies | 25,000 |
Delivery vehicle maintenance and gas | 5900 |
Calculate Bian's implicit costs.
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