Problem: Simi is concerned about her funds because all her savings have been invested on tuition and housing. Therefore, she doubts on continuing second year of university on business administration or taking a period off from University to find a job in Vancouver, British Columbia. Her current plan is to work full basis from Monday to Saturday, 6 hours per day in a local restaurant. Her expected salary including tips (which are variable) is $19 per hour from Monday to Thursday and an increase of 10% of hour rate for Friday and Saturday. She has not to pay cost of rent while living in a familiar house, and she expects $ 1.000,00 living expenses each month. In addition, she aims to gain extra profits from her part-time painting business. From her experience, she will earn $ 50 per painting and she would sell 100 paintings. She also is thinking in promoting her business through media to attract more customers. Her projections for next year include shipping expenses (an average of $15 per ship) also; she expects that the cost of supplies for 100 paintings will be $ 1.200 in a year, so she will increase to $75 the price per painting. Simis estimations for 2023 is to sell 100 and to have a growth of 8% to 10% annually. However, she is concern about maintaining records, she is optimistic. She want to analyze profitability and increasing it through on analytical tools. Analysis

Option 1 solution: Based on Simis salary projection, she will earn from Monday to Thursday a total of $456 and due to the increase up to 10% for Friday and Saturday she will earn $250,80, without considering taxes, she will total earning will be $706,80 weekly and 2.827,20 monthly without taxes, so in a year Simi will earn a total amount $ 33.926,40. In Canada, individuals are subject to taxation based on a marginal tax bracket structure both for the federal and provincial government. According to 2022 tax brackets in BC, Simi will be on the bracket from $0 to $43.070; therefore, she will pay 20.06% combined marginal tax rate. Simis marginal taxation amount will be $6.805,64. Moreover, there are other legal paycheck deductions to consider. The Canadian Pension Plan (CPP) that is a monthly payment for retirement, with a deduction of 5.70% of the salary and the Employment Insurance, where 1.58% is deducted to protect individuals who lose their jobs. The (CPP) contribution will represent a deduction of $ 1.933,80 and (EI) will reach an amount of $ 536,04. All together means that after deductions, the net pay in a year will be $ 24.650,92 and $ 2.054,24 per month. Moreover, considering projections on her painting business for 2023, she will sell 100 paintings, shipping expenses estimated to be $15 per ship, and cost of supply will be $1.200 in the year ($12 per painting), the increased price per painting will be $75. Simis expectations are growing annually of to 8% to 10%. Small business in British Columbia pay a flat rate of 9% federally and 2% on the provincially (combined tax rate of 11%). For the end of 2023, Simis income statement will looks like: Snazzy Simis Swirls December 31, 2023 Painting sales revenue $ 7.500 (-) Ship expenses $ 1.500 (-) Supply expense $1.200 Income before taxes $ 4.800 (-) Income taxes $ 528 Net Income $ 4.272 The total annually income of Simis (considering her salary and net income of her business) will be $ 28.922,92, with an average monthly income of $2.410,24. Considering that she is expected to pay $1.000,00 for expenses living, she stills will have $1.410,24 monthly that could be invested in her studies or to expand her business to reach the up to 10% expectations grow. She also must consider that in BC there are also education tax credits that will benefit her.

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