Question: Sam Smith is currently employed as a mechanical engineer and is paid $65,000 per year plus benefits that are equal to 30% of his salary.

Sam Smith is currently employed as a mechanical engineer and is paid $65,000 per year plus benefits

that are equal to 30% of his salary. Sam wants to begin a consulting firm and decides to leave his current

job. After his first year in business, Sam's accountant informed him that he had made $45,000 with his

consulting business. Sam also notices that he paid $6,000 for a health insurance policy, which was his

total benefit during his first year. What was Sam's opportunity cost?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Q:

Please answer the questions below: 1. Sam Smith is currently employed as a mechanical engineer and is paid $65,000 per year plus benefits that are equal to 30% of his salary. Sam wants to begin a...

Q:

Sam Smith is currently employed as a mechanical engineer and is paid $65,000 per year plus benefits that are equal to 30% of his salary. Sam wants to begin a consulting firm and decides to leave his...

Q:

Sam Smith is currently employed as a mechanical engineer and is paid $65,000 per year plus benefits that are equal to 30% of his salary. Sam wants to begin a consulting firm and decides to leave his...

Q:

*** PLEASE SHOW & EXPLAIN ALL WORK *** Sam Smith is currently employed as a mechanical engineer and is paid $65,000 per year plus benefits that are equal to 30% his salary. Sam wants to begin a...

Q:

Sam Smith is currently employed as a mechanical engineer and is paid $65,000 per year plus benefits that are equal to 30 percent of his salary. Sam wants to begin a consulting firm and decides to...

Q:

1.Carol Jones wanted her business to increase sales by 50 percent over the next five years. To do so, she must hire three more people. She wanted to determine how to evaluate these people, so she...

Q:

I need number one completed with an explanation,I don't understand it.. EXERCISES AND PROBLEMS 1. Carry Yoki's Lounge consists of the following: Carry, the owner, believed that people would come to...

Q:

I need number 2 completed and an explanation because I don't understand it... EXERCISES AND PROBLEMS 1. Carry Yoki's Lounge consists of the following: Carry, the owner, believed that people would...

Q:

SQQUESTION 1 Giovanni is currently employed as a mechanical engineer and is paid 80,000 per year plus premium that are equal to 20% of his salary. Giovanni wants to begin a consulting firm and...

Q:

. QUESTION 1 Giovanni is currently employed as a mechanical engineer and is paid $80,000 per year plus premium that are equal to 20% of his salary. Giovanni wants to begin a consulting firm and...

Q:

The following table gives the state taxes (in dollars) on a pack of cigarettes for nine states as of April 1, 2020. State State Tax (in dollars) Alaska 2.00 Iowa 1.36 Massachusetts 2.51 Missouri 0.17...

Q:

The shareholders of D Corporation, a calendar year S corporation, voluntarily revoke the S election on July 1, 2021. They do not specify a future effective date in the revocation. When will the...

Q:

Which of the following institutions tend to not be primary purchasers of bonds? Group of answer choices Mutual funds Pension funds Insurance companies Finance companies

Q:

A good target price is: a. Close to your bottom line (i.e. reservation price) b. Without boundaries or limits c. Aggressive but justifiable d. Different for each issue in the negotiation e. Outside...

Q:

15. Ask yourself the following questions: What do you want to remember from your everyday experiences? These are the experiences that fill most of your life. They may take 9099% of your time. What do...

Q:

What reward will you give yourself when you achieve this?

Q:

11. Now consider the different goals you have for your life in the future. See these goals in relation to your core values and your roles. How do goals affect your roles and your values? Development...