Question

You receive two job offers in the same big city The first job is close to your parents' house and they have offered to let you live at home for a year so you won't have to incur expenses for housing food or cable and internet. This job pays $45 000 per year. The second bis a way from your parents' house, so you have to rent partment with parking (511 000 per year buy your own food (54 000 per year, and pay for your own cable and internet($850 per year) This job pays $51.000 per year. You still plan to do laundry at your parents' house once a week if you live in the city and you plan to go to the city once a week to visit with friends if you live at home. Thus, the cost of operating your car will be about the same other way in adston your parents run to pay for your cell phone service 5740 per year) Read the requirements Autempts 1 of 2 Requirement 1. Based on this information alone what is the net difference between the two alternatives salary, net of relevant costs? Begin by computing the net salary for each alternative (Complete all answer boxes Enter a ''for any zero balances) Job 31 Job #2 Salary Less Relevant expenses Salary, net 1 of 2 O of The net difference between the two jobs is $ I would save this much money if I chose Requirement 2. What information is irrelevant? Why? relevant because they

Answer 1

Relevant costs are those which are different amongst alternatives.

	Job 1	Job 2
Salary	46000	51000
Less: Relevant expenses	740	15850
Salary, net	45260	35,150

Difference =$10,110

Choose job1

Operating cost of car is irrelevant since same under both alternatives