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Jamie is considering leaving her current job, which pays $75,000 per year, to start a new company that develops applications for smart phones. 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

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Answer:

The accounting costs during the first year of operation is $145,000

Explanation:

Accounting cost: It is that cost which represents expenditure for a particular year.

In this question, the accounting cost would be annual overhead costs and operating expenses. So, it would be $145,000

All other costs which are mentioned in the question are irrelevant. Thus, ignored the other things because they are used to compute the implicit and the opportunity cost