Sally Rand owns a ceiling fan company. She sells 1,000 ceiling fans at $50 each. Each fan costs her $20. She uses her own money to buy the fans; she withdraws the money from her savings account where

Sally should remain in business as she would earn a profit of $30,000 from selling 1,000 fans. This can be calculated as follows: Revenue from selling fans = 1,000 x $50 = $50,000 Cost of fans = 1,000 x $20 = $20,000 Profit = Revenue - Cost = $50,000 - $20,000 = $30,000 Furthermore, Sally can also earn interest on the money she withdrew from her savings account to buy the fans. Assuming she withdrew $20,000 from her savings account, she would earn interest of $1,000 (5% of $20,000) over the course of a year. Lastly, Sally's previous job as a fan-dancer is not relevant to the decision of whether she should remain in business or not. It is important to focus on the financials and profitability of her ceiling fan company.