Question
Mr. Jones quits his $25,000 job as chef at Le Pomery, to open his own restaurant. He used $50,000 of his savings that had been
Mr. Jones quits his $25,000 job as chef at Le Pomery, to open his own restaurant. He used $50,000 of his
savings that had been earning 5% interest to purchase equipment. At the end of his first year he gave his
tax accountant the following information:
Wages Paid to Employees
Rent on Building
Utilities
Food
Sales Revenue
$110,000
$ 5.000
$ 10,000
$100,000
$250,000
Based on the above calculations, Mr. Jones should:
Group of answer choices
A. definitely remain in business.
B. be indifferent between staying in the business and selling out.
C. Cannot tell from the information provided.
D. sell out and leave the business.
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