Answer:
The start up cost of the Tempe amounts to $32,000
Explanation:
Startup cost is the cost or an expense which is incurred during the procedure of creating or establishing the new business. And the example of the start up costs or pre- opening cost are research expense, business plan and expense for technology. The Post- opening expense involve promotion, employee expense and advertising.
The start up costs of Tempe is computed as:
Start up costs = Pre- opening advertising expenses + New employees training costs before opening the business
where
Pre- opening advertising expenses is $20,000
New employees training costs before opening the business is $12,000
So, putting the values above:
Start up costs = $20,000 + $12,000
Start up costs = $32,000
