Calculate the earnings of justin brimer operating

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Reference no: EM131285297

Justin Brimer owns his own taxi, for which he bought a $24,000 permit to operate two years ago. Mr. Brimer earns $35,000 a year operating as an independent but has the opportunity to sell the taxi and permit for $82,000 and take a position as dispatcher for Carter Taxi Co. The dispatcher position pays $31,000 a year for a 36-hour week. Driving his own taxi, Mr. Brimer works approximately 50 hours per week. If he sells his business, he will invest the $82,000 and can earn a 10 percent return. Required a. Determine the opportunity cost of owning and operating the independent business. b-1. Calculate the earnings of Justin Brimer operating as an independent. b-2. Calculate the earnings of Justin Brimer working as a dispatcher. b-3. Based solely on financial considerations, should Mr. Brimer sell the taxi and accept the position as dispatcher? Yes No

Reference no: EM131285297

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Calculate the earnings of justin brimer operating : Justin Brimer owns his own taxi, for which he bought a $24,000 permit to operate two years ago. Mr. Brimer earns $35,000 a year operating as an independent but has the opportunity to sell the taxi and permit for $82,000 and take a position as dispatc..

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