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Johnson works as a store manager and earns $32,000 a year. He is thinking of leaving his job and starting his own business. He owns
Johnson works as a store manager and earns $32,000 a year. He is thinking of leaving his job and starting his own business. He owns a building that is currently rented out for $10,000 a year. He plans to use this building for his own business. Johnson has some money in the bank which eans him an interest of $3,000 a year. This money is to be invested in his business. Johnson has worked out the following estimates for his new business: Total Sales Revenue $130,000 Cost of raw materials $85,000 Employees' wages $20,000 Utilities $5.000 Taxes $5,000 Advertising expenses $10,000 Advise Johnson on whether he should give up his job and start this new business. Explain your rationale clearly with the relevant workingsfcalculations
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