Differential Costing

Tim Word owns mens clothing store in San Diego. He was recently offered the position of store manager at Anthonys, a large retail store in the area. Working at Anthonys, Tim would earn an annual salary of $50,000. Tim knows that he could sell the net assets of his business for $503,000 but is uncertain whether to sell the business and manage Anthonys or continue operating his own store. Tim begins his analysis of the two alternatives by examining his stores income statement from last year.

Sale $225,000

Cost of goods sold 135,000

Gross profit $90,000

Operating expenses Rent $ 7,200

Employee wages 17,000

Utilities 3,640

Supplies 560

Advertising 1,450

Professional fees 1,150

Insurance 820

Miscellaneous 630

Total operating expenses 32,450

Net income $57,550

What should Tim do?

( Explain in detail your answer, and why )

Please give the best answers and share all options possible, it's consider a bonus question for a winner group only.

Thank you.