prob010

# prob010 - Problem 10 (Past exam question: 40 minutes)...

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Problem 10 (Past exam question: 40 minutes) (Text: Ch. 3) 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 his present location, Beamsville, Ontario, and he would be required to operate from the basement of his home. Graham indicates that his estimated cash expenses including PST @ 8% and GST would be: Travel outside of Beamsville Meals (equal monthly amounts) \$3,200 Accommodation 5,000 \$8,200 Total car operating costs (Note 1) Gas and Oil \$2,200 Maintenance 800 3,000 Insurance (if car owned) 1,300 \$4,300 Office expenses — 20% of total space (Note 2) Mortgage interest 20% x \$19,000 \$3,800 House insurance 20% x 800 160 Municipal taxes 20% x 2,500 500 Utilities 20% x 1,000 200 Interest on bank loan (Note 3) 500 \$5,160 Entertainment expenses including golf club membership of \$1,100 (equal monthly amounts) \$4,000 Telephone — long distance calls \$1,000 Office supplies

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## This note was uploaded on 11/19/2010 for the course ACC 742 taught by Professor Sydor during the Spring '10 term at Ryerson.

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prob010 - Problem 10 (Past exam question: 40 minutes)...

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