Answer:
Yes, it is a good deal for him financially.
Explanation:
math teacher's salary = $40,000 per year
similar job in the suburbs pays $50,000 per year
buying a car costs = $300 x 12 = $3,600 per year
additional costs of owning and using a car = $100 x 12 = $1,200
since we are given the amount of time Kevin will spend travelling to the suburbs vs the amount of time he spends going to his school, we cannot include the opportunity costs of the time spent travelling.
Kevin's incremental analysis = $50,000 (new salary) - $40,000 (old salary) - $3,600 (cost of a car) - $1,200 (other expenses) = $5,200
Since the incremental revenue is larger than the incremental costs, then he should take the job.
