Graham Grepzer has come to you in connection with two offers of employment as a salesperson...

 

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Graham Grepzer has come to you in connection with two offers of employment as a salesperson from two rival dry-goods manufacturing companies. Neither company has an office in Graham's present location of Beamsville, Ontario, and he would be required to operate from the basement of his home. Graham indicates that his estimated cash expenses including HST @ 13% would be: Travel outside of Beamsville Meals (equal monthly amounts) Accommodation Total car operating costs (Note (1)) Gas and Oil Maintenance. that is, 28 days. Insurance (if car owned) Office expenses -20% of total space (Note (2)) Mortgage interest 20% x $19,000 House insurance payments $3,200 5,000 earning day of the contract $8,200 $2,200 of days of 800 3,000 ed to 1,300 $4,300 20% × 800.. Municipal taxes 20% X 2,500 Utilities 20% 1,000 Interest on bank loan (Note (3)) Entertainment expenses including golf club membership of $1,100 (equal monthly amounts). ... Telephone-long-distance calls $3,800 160 500 200 500 $5,160 $4,000 $1,000 $ 500 Office supplies. . Assume that all these expenses are reasonable in the circumstances. Notes: (1) These amounts are the total car expenses. He estimates that his total kilometres will be 30,000 of which 24,000 will be for business purposes. (2) The home was purchased ten years ago for $150,000. (3) The interest on the bank loan is for the acquisition of $5,400 of office equipment. Graham Grepzer has come to you in connection with two offers of employment as a salesperson from two rival dry-goods manufacturing companies. Neither company has an office in Graham's present location of Beamsville, Ontario, and he would be required to operate from the basement of his home. Graham indicates that his estimated cash expenses including HST @ 13% would be: Travel outside of Beamsville Meals (equal monthly amounts) Accommodation Total car operating costs (Note (1)) Gas and Oil Maintenance. that is, 28 days. Insurance (if car owned) Office expenses -20% of total space (Note (2)) Mortgage interest 20% x $19,000 House insurance payments $3,200 5,000 earning day of the contract $8,200 $2,200 of days of 800 3,000 ed to 1,300 $4,300 20% × 800.. Municipal taxes 20% X 2,500 Utilities 20% 1,000 Interest on bank loan (Note (3)) Entertainment expenses including golf club membership of $1,100 (equal monthly amounts). ... Telephone-long-distance calls $3,800 160 500 200 500 $5,160 $4,000 $1,000 $ 500 Office supplies. . Assume that all these expenses are reasonable in the circumstances. Notes: (1) These amounts are the total car expenses. He estimates that his total kilometres will be 30,000 of which 24,000 will be for business purposes. (2) The home was purchased ten years ago for $150,000. (3) The interest on the bank loan is for the acquisition of $5,400 of office equipment.

Answer rating: 100% (QA)

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