Scenario 12-8 Ellie Has Been Working for an Engineering Firm and Earning

question 239

Multiple Choice

Scenario 12-8
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 12-8.Ellie's annual implicit costs will equal

• A) $55,200.
• B) $75,200.
• C) $80,500.
• D) $165,700.

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Definitions:

Suboptimization

A situation where the optimization of a part of an organization or system results in the suboptimal performance of the whole.

Temporary Settlements

Provisional arrangements or dwellings that are intended for use over a limited period of time.

Complex Issues

Problems or matters that are difficult to understand or resolve due to their intricate and multifaceted nature.

Task Conflict

Disagreements or disputes that arise in the workplace specifically related to duties, assignments, or the content of work.