Jim Martin owns a men's clothing store in Philadelphia. He was recently offered the position of store manager at Anthony's, a large retail chain store in the area. Working at Anthony's, Jim would earn an annual salary of $50,000. Jim knows that he could sell the net assets of his business for $115,000, but is uncertain whether to sell the business and manage Anthony's or continue operating his own store. Jim begins his analysis of the two alternatives by examining his store's income statement from last year. What should he do?

Revenue..$225,000 Cost of goods sold...135,000 Rent...7,200 Employee wages...17,000 Utilities...3,640 Supplies...560 Advertising...1,450 Professional fees...1,150 Insurance...820 Miscellaneous expenses...630