Sam Quits His Job as an Airline Pilot and Opens

question 10

Multiple Choice

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 hanger and could rent it out for $5,000 per year. He rents a computer for $1,200, 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. Sam's accounting profit this year equals:

• A) $45,600.
• B) $51,400.
• C) $39,000.
• D) $44,800.

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Definitions:

Short-Term

Referring to a limited period of time, often contrasting with long-term or permanent situations.

Long-Term

Referring to an extended period of time, often implying durability or sustained attention beyond the short-term or immediate future.

Visuospatial Sketchpad

A component of the working memory that processes visual and spatial information, allowing for the manipulation of images and spatial understanding.

Executive Control System

A cognitive system responsible for the planning, initiation, sequence, and monitoring of complex goal-directed behaviors.