ACCT_3500_MINI CASE 1- Chapter 2 Jake Henderson has invented a new design for Snow Slide called EasySlide. Jake believes the potential for his new product is huge and has decided to leave his $7,000 per month job as a procurement manager to produce and sell the snow slides through his new company, EasySlide Inc. Jake will rent factory space that will be used to produce the new product. The rent for this factory space will be $3,000 per month and he will rent metal fabrication equipment for $1,800 per month. The cost of materials for each snow slide will be $80.00. Production employees will be hired to make and assemble the snow slides. They will be paid $6.00 for each completed unit. Jake will rent a small suite in an office building for use as his sales office. The office rent will be $1,800 per month. An important part of his strategy is to keep costs low. This is accomplished by hiring a part-time purchasing agent to search for low-cost sources of materials (steel and clips) used in the production of snow slides. This person will be paid $1,500 per month. In addition, Jake has added texting and voice messaging to his business cellphone plan to get after-hours messages from customers and this will increase Jake's monthly cellphone bill by $15. Jake had a savings of $50,000 that he invested in a money market mutual fund from which he is earning an average of $2,500 per year. The business requires an up-front cash investment and Jake decided to use this fund to address this need. To promote his new product, he will pay for a 1-minute commercial on a radio station to be played over 4 months. This radio commercial will cost $2,000 per month to air. He spent $800 to help to create the radio commercial. In addition, he will pay a sales commission of $5.50 for each rake sold to local sport equipment retailers. No salary will be taken by Jake in the foreseeable future. Required: 1. Create a table with columns labelled with the appropriate cost classifications (see below). Include names of all the relevant costs in the Description column and use an X to indicate the appropriate cost classification (note: most cost items belong to more than one category). ACCT_3500_MINI CASE 1- Chapter 2 Jake Henderson has invented a new design for Snow Slide called EasySlide. Jake believes the potential for his new product is huge and has decided to leave his $7,000 per month job as a procurement manager to produce and sell the snow slides through his new company, EasySlide Inc. Jake will rent factory space that will be used to produce the new product. The rent for this factory space will be $3,000 per month and he will rent metal fabrication equipment for $1,800 per month. The cost of materials for each snow slide will be $80.00. Production employees will be hired to make and assemble the snow slides. They will be paid $6.00 for each completed unit. Jake will rent a small suite in an office building for use as his sales office. The office rent will be $1,800 per month. An important part of his strategy is to keep costs low. This is accomplished by hiring a part-time purchasing agent to search for low-cost sources of materials (steel and clips) used in the production of snow slides. This person will be paid $1,500 per month. In addition, Jake has added texting and voice messaging to his business cellphone plan to get after-hours messages from customers and this will increase Jake's monthly cellphone bill by $15. Jake had a savings of $50,000 that he invested in a money market mutual fund from which he is earning an average of $2,500 per year. The business requires an up-front cash investment and Jake decided to use this fund to address this need. To promote his new product, he will pay for a 1-minute commercial on a radio station to be played over 4 months. This radio commercial will cost $2,000 per month to air. He spent $800 to help to create the radio commercial. In addition, he will pay a sales commission of $5.50 for each rake sold to local sport equipment retailers. No salary will be taken by Jake in the foreseeable future. Required: 1. Create a table with columns labelled with the appropriate cost classifications (see below). Include names of all the relevant costs in the Description column and use an X to indicate the appropriate cost classification (note: most cost items belong to more than one category)