Should a Carpenter Return to His Old Job?

Calculation of Profit

Profit = Sales - Operation costs

Profit = $100,000 - $70,000 = $30,000

According to the calculation, the carpenter earns a profit of $30,000 per year from his cabinetmaking business. If the lowest wage offered for his old job at the furniture factory is at least $30,000 or more, he should consider returning to his old job. This is because he would need to match or exceed his annual profit from his own business to justify the switch.

Returning to his old job for a wage lower than his annual profit would result in a financial loss for the carpenter. Therefore, he should only return if the wage offered is equal to or greater than $30,000 to ensure he maintains or improves his financial standing.

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