Mathematics

Nelson

23 April, 22:11

Sam is planning to start a pool cleaning business from his home. He has developed the following cost analysis for the set-up and operation for the first year of his business. He has $9,000 in savings and $23,000 in credit that he can use for the business. Will Sam be able to afford the operational costs of the first year of business on his own?

Item

Cost

Truck

$9,000

Pool Cleaning Supplies

$6,000

Payroll

$23,000

Advertising

$1,500

a.

No, Sam will be short $7,500.

b.

No, Sam will be short $15,500.

c.

Yes, Sam will have $7,500 to spare.

d.

Yes, Sam will have $15,500 to spare.