A. Number Cruncher #1 - p.73 1. In preparing this problem you need to make several decisions before gathering your data. a) Determine what the present cost of riding the bus to work vs the cost of driving to work, to the new job. (See Ch 5 p. 135 regarding cost per mile) b) Determine how much it costs to buy lunch at the employees cafeteria vs the cost for lunch at a restaurant. (New employer has no cafeteria) c) Determine how much more it will cost on the new job to upgrade your wardrobe since it will require more fashionable clothes. d) Include any added incidental costs, such as drinks, snacks, happy hours that you might spend at the new job vs what you spend at the old job. 2. After determining all the costs associated with the new job vs what you spend on the old job (commuting, clothes, lunches, etc.), determine how much more income you will need from the new job to cover your increase in expenses. Show all calculations.

RKING Test yourself How would you deal these real-life possibilities have with not 1. Your parents will be retiring soon. You worry that they will enough income to live in the style to which they've been accustomed What are much, if all, can you help them what if help them rig ht now, how will you react if they run into going problems a few years from now? tells you that you're job 2. Economic conditions are harsh, and your boss to keep your to have to take a pay cut of 10 percent if vou want Where will you cut spending to offset this cut in 3. major company is opening a branch in your city and Make up a shopping people with your skills. You'd like apply working for the company things need to know about to enable you make a wise decision 4. rumors that your company may be acquired by another one with a reputation for running a "lean and mean" shop. You fear your job is in jeopardy. What can you do, now and when the merger occurs, to protect yourself? If the worst case does occur, what sources of income can you tap your savings, your former employer, and/or the government-to tide you over until you find a new job? Number Crunchers Do the calculations to make decisions in these real-life possibilities. 1. Your place of work is a quick and easy from home. Dress is b ride casual on the job, and there is a pleasant low-cost employees' cafeteria. You have a new job possibility that's in an upscale area ten miles from your home. There's no transit to that place, so you'd have to drive. The new job require more fashionable clothing, and all of the as restaurants are pricey: You'd to pay two to three times much for a lunch as you now have pay in the employees' cafeteria. Consid- ering the expenses involved in this new job (commuting, clothing, order to etc.), much of a pay increase would you have to get in You've earn the same take-home pay you're now earning? 2. photography? hooked on a new leisure pursuit golf? scuba diving? skiing? You really want to get involved, but it's going to RKING Test yourself How would you deal these real-life possibilities have with not 1. Your parents will be retiring soon. You worry that they will enough income to live in the style to which they've been accustomed What are much, if all, can you help them what if help them rig ht now, how will you react if they run into going problems a few years from now? tells you that you're job 2. Economic conditions are harsh, and your boss to keep your to have to take a pay cut of 10 percent if vou want Where will you cut spending to offset this cut in 3. major company is opening a branch in your city and Make up a shopping people with your skills. You'd like apply working for the company things need to know about to enable you make a wise decision 4. rumors that your company may be acquired by another one with a reputation for running a "lean and mean" shop. You fear your job is in jeopardy. What can you do, now and when the merger occurs, to protect yourself? If the worst case does occur, what sources of income can you tap your savings, your former employer, and/or the government-to tide you over until you find a new job? Number Crunchers Do the calculations to make decisions in these real-life possibilities. 1. Your place of work is a quick and easy from home. Dress is b ride casual on the job, and there is a pleasant low-cost employees' cafeteria. You have a new job possibility that's in an upscale area ten miles from your home. There's no transit to that place, so you'd have to drive. The new job require more fashionable clothing, and all of the as restaurants are pricey: You'd to pay two to three times much for a lunch as you now have pay in the employees' cafeteria. Consid- ering the expenses involved in this new job (commuting, clothing, order to etc.), much of a pay increase would you have to get in You've earn the same take-home pay you're now earning? 2. photography? hooked on a new leisure pursuit golf? scuba diving? skiing? You really want to get involved, but it's going to