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 accounting costs will equal
A) $55,200.
B) $75,200.
C) $80,500.
D) $165,700.

Question

Quizplus · Accepted Answer

Ellie's annual accounting costs will be $55,200. This includes her office rent ($15,000), equipment rental ($3,000), supplies ($1,000), utilities ($1,200), and secretary/bookkeeper salary ($35,000).

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