You have always wanted to run your own business and make a positive contribution to society. You

Question:

You have always wanted to run your own business and make a positive contribution to society. You are a good organizer and your closest friend is a talented geologist. You decide to buy a drill-rig truck and subcontract to charities and governments that need water wells drilled for isolated communities in Australia. The truck will cost $250,000. You calculate that your other fixed costs, including salaries, gas for the truck, and license fees, are about $70,000 per year. Variable costs including the cost of drills, pipes, pumps, pressure vessels, bricks, cement, and other construction items will be $8,400. Communities and local authorities will usually assign around $15,000 per well. Calculate the break-even for your drilling business. After reviewing your break-even, what changes would you consider? Is this the sort of business you want to run?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Principles Of Marketing

ISBN: 9781292449364

19th Global Edition

Authors: Gary Armstrong

Question Posted: