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:

Conflict

A struggle or disagreement between opposing parties or ideas, which can occur at personal, societal, or international levels.

Essential Component

A fundamental or necessary part required for the operation or existence of a system or whole.

Second-Order Changes

Transformative changes within systems that modify the fundamental structures or rules, leading to a qualitative difference in the system's behavior.

Family System Structures

The organizational hierarchy, roles, and boundaries within a family that influence behavior and interactions.