Camila is currently working full-time and earning $90,000 a year. She is going to quit her...

 

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Camila is currently working full-time and earning $90,000 a year. She is going to quit her job to start her own business, which she plans to run from her second bedroom. She has been leasing that room to another resident $660 a month. Camila has paid her husband $400 to with marketing. In addition, she has switched to a faster internet plan costing $144/month instead of the $60/month was paying before. She also expects her combined utility bills to rise from $180 to $360 a month now that she will be working from home. a) How much does Camila need to make per month on her new business to justify quitting her job and remain self-employed? b) Please identify and explain if there are any opportunity costs and/or sunk costs that exist in this problem. Camila is currently working full-time and earning $90,000 a year. She is going to quit her job to start her own business, which she plans to run from her second bedroom. She has been leasing that room to another resident $660 a month. Camila has paid her husband $400 to with marketing. In addition, she has switched to a faster internet plan costing $144/month instead of the $60/month was paying before. She also expects her combined utility bills to rise from $180 to $360 a month now that she will be working from home. a) How much does Camila need to make per month on her new business to justify quitting her job and remain self-employed? b) Please identify and explain if there are any opportunity costs and/or sunk costs that exist in this problem.

Answer rating: 100% (QA)

a To determine how much Camila needs to make per month on her new business to justify quitting her job and remain selfemployed we need to consider her ... View the full answer