You quit your job where you earned $45,000 a year to start y…
You quit your job where you earned $45,000 a year to start your own widget business. To start your business, you cashed in your investments of $50,000 which earned you 10% a year in interest. In the first year, you sold 10,000 widgets at $50 per unit. Of that $50 per unit, $45 went towards production costs; materials, utilities, labor, marketing, packaging, lease payments, etc. Refer to the above information. Your explicit costs for the first year are: