Scenario 13-5 Samantha Has Been Working for a Law Firm and Earning

question 325

Multiple Choice

Scenario 13-5
Samantha has been working for a law firm and earning an annual salary of $80,000.She decides to open her own practice.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.Samantha 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 13-5.According to Samantha's accountant,which of the following revenue totals will yield her business $50,000 in profits?

• A) $55,200.
• B) $105,200.
• C) $132,500.
• D) $185,700.

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Definitions:

Fitness for a Particular Purpose

An assurance that a product will meet the requirements of a specific use for which the buyer informs the seller, implied in a sale under the Uniform Commercial Code.

WiFi

A technology that allows electronic devices to connect to a wireless local area network (WLAN), primarily using the 2.4 gigahertz and 5 gigahertz radio bands.

Implied Warranty

An unstated guarantee that a product will meet a minimum level of quality and functionality.

Exclusion

The act of denying or restricting someone's access to a service, area, or group, often based on specific criteria.