Micro Cost/benefit Analysis

A friend of yours has asked your opinion about an important decision in his career. He is 41 years old, married with two kids ages 15 and 10. Currently, he is a system's analyst, working full-time, earning $7,200.00 per month (before taxes), with a nice benefit package. His wife currently works part-time as a bookkeeper bringing in an additional $1,000 per month. The parent company has offered him a job in upper management; unfortunately the job is in Otsego, Minnesota, which is about 30 miles north of Minneapolis. As with any decision, there are both costs and benefits associated with this proposed career change. He has come to you with a list of all the positive and negative things he has been able to identify with the new job.

Carefully read the information below, and then do one thing with the data.

(1) Prioritize each list, from most important to least important.

Benefits :

1. The new job would give him more responsibility and more room for advancement.

2. The cost of living should be slightly lower in Otsego than Imperial Valley.

3. His salary will increase by about $21,000 per year.

4. The company has offered a transfer package including a bonus and moving expenses of $17,500.

5. The Minnesota schools rank in the top five in America and have one of the lowest drop-out rates in the nation.

6. If they move, his wife would no longer need to work and could spend more time with the kids if she so chooses.

7. His youngest child, Robert, has had problems in school and a change of scenery might be good for him.

8. They would be living only a half hour from Minneapolis, so they would be close to good shopping and entertainment.

Costs :

1. The new job would also require him to work more hours.

2. The winters in Minnesota are long and cold (average temp in winter 14).

3. When searching the "Welcome to Otsego Website", he found only one listing for Thai restaurants (the family's favorite restaurant food).

4. They have no friends or relatives anywhere outside of California, except for his wife's weird aunt Edna who lives in Wisconsin.

5. His oldest child, Teresa, is a sophomore in high school and does not want to move and leave all her friends.

6. However, they would lose her income.