Question

Jasmine is self-employed in a store that has a rental value of $500 a month which she pays, but she can vacate the building without giving notice. her other expenses are $100 a month for maintenance. she makes $25,000 a year on net sales (total revenue minus the wholesale cost of the product). if she quit her job and worked the same number of hours elsewhere at a job she liked equally well, she estimates that she could make $20,000 a year. no one else can be hired to work in the store. jasmine should ____

group of answer choices
A. work part-time.
B. keep the job.
C. quit her job.
D. it cannot be determined from the information given.

Answer 1

Jasmine should keep her job due to the higher net income compared to the alternative. The correct answer is option B.

Step-by-step explanation:

In this scenario, Jasmine pays a monthly rental value of $500 for the store she is self-employed in. Her other expenses amount to $100 for maintenance. On net sales, she makes $25,000 a year after subtracting the wholesale cost of the product. If Jasmine were to quit her job and work the same number of hours elsewhere, she estimates she could make $20,000 a year. Since her current job offers a higher net income than the alternative job, Jasmine should keep the job.