Case project 6.1: How is your business going?

Assume that you have taken 12 months' leave without pay from your full-

time job as a dressmaker and set up a business ironing and repairing

clothes. You have taken out a 12-month lease on a small shopfront in a

suburban shopping centre. You have bought all the equipment you need

for your business and arranged the fit-out of your premises to

accommodate your work requirements. You have paid for these set-up

costs out of your previous savings. You will not be able to buy any more

equipment during the next 12 months. For the year, your total explicit

costs are $25 500 and your implicit costs are $45 000.