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Sam quits his job as an airline pilot and opens his own pilot training school. He was earning $40,000 as a pilot. He withdraws
Sam quits his job as an airline pilot and opens his own pilot training school. He was earning $40,000 as a pilot. He withdraws $10,000 from his savings where he was earning 6 percent interest and uses the money in his new business. He uses a building he owns as a hangar and could rent it out for $5,000 per year. He rents a computer for Sl ,200, buys office supplies for $500, rents an airplane for $6,000, pays $1,300 for fuel and maintenance, and hires one worker for $30,000. Sam's total revenue from pilot training classes this year equaled $90,400. Fill in Multiple Blanks: Show all your answers in whole dollars, that is, do not show any cents,_i.e., any digits to the right of the decimal point, for example, 12,000; 12,300; 12,330; 12,333. Apply the appuepriate rounding rule if necessary. Do show any symbols ($) or words in your answer. (a) Sam's explicit costs are 49,600 (b) Sam's implicit costs are 15,600 (c) Sam's accounting profit is (d) Sam's economic profit is 25,200 dollars. dollars. dollars. dollars.
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