Jamie is considering leaving her current job, which pays $75,000 per year, to start a new company that develops applications for smartphones. based on market research, she can sell about 50,000 units during the first year at a price of $4 per unit. with annual overhead costs and operating expenses amounting to $145,000, jamie expects a profit margin of 20 percent. this margin is 5 percent larger than that of her largest competitor, apps, inc. a. if jamie decides to embark on her new venture, what will her accounting costs be during the first year of operation? her implicit costs? her opportunity costs? accounting costs: $ 55000 implicit costs: $ opportunity costs: $ b. suppose that jamie's estimated selling price is lower than originally projected during the first year. how much revenue would she need in order to earn positive accounting profits? positive economic profits? revenue needed to earn positive accounting profits: $ revenue needed to earn positive economic profits: $

1tanner invested $135,000 cash along with office equipment valued at $32,400 in the company in exchange for common stock. 2 the company prepaid $7,200 cash for 12 months’ rent for office space. (hint: debit prepaid rent for $7,200.) 3 the company made credit purchases for $16,200 in office equipment and $3,240 in office supplies. payment is due within 10 days. 6 the company completed services for a client and immediately received $2,000 cash. 9 the company completed a $10,800 project for a client, who must pay within 30 days. 13 the company paid $19,440 cash to settle the account payable created on april 3. 19 the company paid $6,000 cash for the premium on a 12-month insurance policy. (hint: debit prepaid insurance for $6,000.) 22 the company received $8,640 cash as partial payment for the work completed on april 9. 25 the company completed work for another client for $2,640 on credit. 28 the company paid $6,200 cash in dividends. 29 the company purchased $1,080 of additional office supplies on credit. 30 the company paid $700 cash for this month’s utility bill. prepare general journal entries to record these transactions. 2. post the journal entries from part 1 to the ledger accounts.

Sonic corp. manufactures ski and snowboarding equipment. it has estimated that this year there will be substantial growth in its sales during the winter months. it approaches the bank for credit. what is the purpose of such credit known as? a. expansion b. inventory building c. debt management d. emergency maintenance

Which of the following is an example of a production quota? a. the government sets an upper limit on the quantity that each dairy farmer can produce. b. the government sets a price floor in the market for dairy products. c. the government sets a lower limit on the quantity that each dairy farmer can produce. d. the government guarantees to buy a specified quantity of dairy products from farmers.