Beyonce is considering leaving her current position to open a music store. Beyonce's current salary is $45,000. Annual music store revenue and costs are estimated at $250,000 and $210,000, respectively. If Beyonce decides to open the music store, the change in her annual income would be:
A) $40,000
B) $85,000
C) ($5,000)
D) $250,000

Question

Quizplus · Accepted Answer

The change in income is calculated as the difference between the profit from the music store and her current salary. The profit from the music store is $250,000 (revenue) - $210,000 (costs) = $40,000. The change in income is $40,000 (profit) - $45,000 (current salary) = -$5,000.

Beyonce Is Considering Leaving Her Current Position to Open a Music