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Sam's total revenue from pilot training classes equaled $90,400. Sam's implicit costs for this year are equal to

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Answer: $45,600

Step-by-step explanation:

The Implicit cost is the opportunity cost. In other words, it is cost that was incurred because a revenue opportunity was sacrificed.

Sam sacrificed his salary as a pilot, his interest payment and the building he could be renting out.

His total implicit cost is;

= 40,000 + (10,000 * 6%) + 5,000

= $45,600

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