Scenario 13-9 Ellie Has Been Working for an Engineering Firm and Earning

question 52

Multiple Choice

Scenario 13-9
Ellie has been working for an engineering firm and earning an annual salary of $80,000. She decides to open her own engineering business. Her annual expenses will include $15,000 for office rent, $3,000 for equipment rental, $1,000 for supplies, $1,200 for utilities, and a $35,000 salary for a secretary/bookkeeper. Ellie will cover her start-up expenses by cashing in a $20,000 certificate of deposit on which she was earning annual interest of $500.
-Refer to Scenario 13-9. According to an economist, which of the following revenue totals will yield Ellie's business $50,000 in economic profits?

• A)$55,200
• B)$100,200
• C)$132,500
• D)$185,700

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Definitions:

Cultural Occurrence

An event or particular instance of behavior that is influenced by and typical within a specific culture.

Different Cultures

The diverse sets of norms, values, beliefs, customs, and practices that define the social and cultural identity of various groups of people around the world.

Unlearned Tendencies

Innate behaviors or predispositions not acquired by learning or experience.

Facial Expressions

Visible changes in the face that convey an individual's emotions to others, including happiness, sadness, anger, and fear.