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At the beginning of the year, an speech sound engineer quit his telephone line and gave up a salary of $175,000 per year in oder to proceed his own line of work, fundamental Devices, Inc. The pertly company builds, installs, and maintains custom audio equipment for businesses that require high-qualtiy audio systems. A partial income statement for 2010 Sound Devices, Inc. is given below. Revenues Revenues from sales of products and operate............................$970,000 Operating costs and expenses Cost of products and services sold...............................................$355,000 Selling expenses ............................................................................$155,000 Administrative expenses ...............................................................$ 45,000 ..Total operative costs and expenses ..........................................$555,000 Income from operations .................................................................$415,000 participation expense from bank loan .....................................................$45,000 Legal expenses to start business ...................................................$28,000 Income taxes ...................................................................................$165,000 Net Income .......................................................................................



$177,000 To get started, the owner of Sound Devices spent $100,000 of his personalized savings to pay for some 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 new businesses with risk levels similar to the risk level of Sound Devices.
perform: Answer Because the owners accounting profit is positive, he is necessarily repair off starting signal Sound Devices than working for another 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 lower income by starting...If you want to get a full essay, order it on our website: Ordercustompaper.com



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