chapter 6 cost of production

Add class comment Micheal is an account executive earning RM3, 500 a month. He is considering to give up his job and set up his own fitness center. He estimates that renting for the space would be RM12, 000 per year, his equipment would cost RM30, 000 a year, hiring worker would be RM30, 000 a year and other expenses such as utilities would cost another RM8, 000. The source of initial deposits is from his fixed deposit of RM80, 000 from bank XYZ which yields a return of 10% per annum. Micheal estimated that his total revenue would be RM100, 000 per year. Advice Micheal whether he should or should not start with his fitness center. (25 marks)