Martha currently performs for a ballet company that pays her a salary of $30,000 a year. She is considering quitting this job and opening her own dance company. She estimates the annual revenues from the company will be $95,000 and the total annual expenses for operating the company, ignoring payments to Martha, will be $75,000. Martha's accountant friend advises her to start her own company because it will be a profitable enterprise. Do you agree with the accountant? Why or Why not?© BrainMass Inc. brainmass.com June 3, 2020, 7:46 pm ad1c9bdddf
I don't think the accountant's advice is correct, because he did not take into consideration the opportunity ...
The solution decides if Martha should start her own company or not.