Joe is self-employed in a store that has a rental value of $500 a month which he pays, but he can vacate the building without giving notice. His other expenses are $100 a month for maintenance. He makes $25,000 a year on net sales (total revenue minus the wholesale cost of the product). If he quit his job and worked the same number of hours elsewhere at a job he liked equally well, he estimates that he could make $20,000 a year. No one else can be hired to work in the store.
Suppose that the store owner gave Joe the store. Now what should he do?
Choose one answer.
a. Quit his job
b. Keep the job
c. Work part-time
d. It is impossible to say with the information given in the problem