Page 2: Sally quit her job as an auto mechanic earning $50,000 per year to start her own 1 business. To save money she operates her business out of a small building she owns which, until she started her own business, she had rented out for $10,000 per year. She also invested her $20,000 savings (which earned a market interest rate of 5% Page 3: per year) in her business. You are given the following information about the first year of her operations. [Show your work] 2 Page 4: Total revenue $120,000 3 Cost of labor 40,000 Cost of materials 15,000 Page 5: Equipment rental 5,000 4 1. Sally's economic cost of running her business. (2 marks) Page 6: 5 V 2. Sally's accounting cost of running her business. (1 mark) Page 7