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:

Hospice Patient

An individual receiving care focused on providing comfort and reducing pain and suffering in their final stage of a terminal illness.

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The quality of being concerned with the human spirit or soul as opposed to material or physical things, often involving personal growth, a quest for meaning, or a connection with something greater.

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The belief in an individual’s capacity to influence and direct their own environment and outcomes.

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