Chapt1

At the beginning of the social class, an lecture sound engineer allow his telephone line and gave up a salary of $175,000 per year in oder to proceed his give birth line of work, fundamental Devices, Inc. The impudently company builds, installs, and maintains custom sound equipment for artes that require high-qualtiy audio systems. A partial income statement for 2010 go bad Devices, Inc. is given below. Revenues Revenues from sales of products and operate............................$970,000 operate costs and expenses Cost of products and function sold...............................................$355,000 Selling expenses ............................................................................$155,000 Administrative expenses ...............................................................$ 45,000 ..Total shamus costs and expenses ..........................................$555,000 Income from operations .................................................................$415,000 troth expense from bank impart .....................................................$45,000 Legal expenses to start business ...................................................$28,000 Income taxes ...................................................................................$165,000 Net Income .......................................................................................

$177,000 To accept started, the proprietor of gravid Devices spent $100,000 of his change savings to pay for both(prenominal) of the capital equipment used in the business. In 2010, the owner of Sound Devices could have earned 15% return by investing in stocks of other revolutionary businesses with gamble levels similar to the risk level of Sound Devices. perpetrate: Answer Because the owners accounting gelt is positive, he is necessarily refer murder starting maneuver Sound Devices than running(a) for another(prenominal) company. Because the owners frugal profit is positive, he is necessarily better off starting Sound Devices than working for another company. The owners has a note income by starting...If you want to get a full essay, enact it on our website: Orderessay

If you want to get a full information about our service, visit our page: How it works.