Problem
Manele, a financial consultant, has been self-employed for two years. His list of clients has grown and he is earning a reputation as a shrewd investor. Manele rents a small office, uses the pool secretarial services, and has purchased a vehicle that he is depreciating over three years.
The following income statements cover Charles's first two years of business:
Year 1 Year 2
Commission revenue 25000 65000
Rent 12000 12000
Secretarial services 3000 9000
Car expenses, gas, insurance 6000 6500
Depreciation 15000 15000
Net income 11000 22500
Manele believes that he should earn more than R11 500 for working very hard for two years. He is thinking about going to work for an investment company where he can earn R40 000 per year. What would you advise Manele to do?