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

$45,600

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

Stage 1 value added $1,800

Stage 2 value added $2,200

Stage 3 value added $4,200

Stage 4 value added $4,300

Explanation:

Calculation to determine the value added at each stage

Stage 1 value added = $1,800

Stage 2 value added =$4,000 – $1,800

Stage 2 value added=$2,200

Stage 3 value added = $8,200 – $4,000

Stage 3 value added = $4,200

Stage 4 value added =$12,500 – $8,200

Stage 4 value added =$4,300

Therefore the value added at each stage are:

Stage 1 value added $1,800

Stage 2 value added $2,200

Stage 3 value added $4,200

Stage 4 value added $4,300