Clare is currently employed in the retail sector, earning a salary of €18,226 per annum. She drives to work and spends €1,703 each year on parking and fuel related solely to her work commute. She is considering setting up a business as a children’s entertainer. If she does, she will have to give up her retail job. She will have to pay €3,005 per annum in insurance for the new business and she estimates that the advertising, supplies and other costs will come to €3,537 for the first year. She will use her current mobile phone as the contact number of the new business. She entered into a 48-month contract with her mobile provider last month, under which she pays €40 a month for calls and data.

If she were making this decision based only on the financial considerations, what is the least Clare would need to earn in revenues in the first year of the new business?

Answer rating: 100% (QA)

Answer Relevant cost is the cost which will be incurred if t... View the full answer