Nicky makes $25,000 a year as a sales clerk. He then decides to quit his job to enter an MBA program full-time (assume Nicky does not work in the summer or hold any part-time jobs). His tuition, books, living expenses, and fees total $15,000 a year. Given this information, the annual total cost of Nicky's MBA studies is

Question

Quizplus · Accepted Answer

The annual cost of Nicky's MBA studies includes both his income loss as a sales clerk and his expenses related to the MBA program.

Income loss:

Since Nicky quits his job to enter the MBA program full-time, he will lose his income of $25,000 per year.

Expenses:

The total expenses for tuition, books, living expenses, and fees are given as $15,000 per year.

Therefore, the annual total cost of Nicky's MBA studies is:

$25,000 (income loss) + $15,000 (expenses) = $40,000

Thus, the correct answer is choice D.

Nicky Makes $25,000 a Year as a Sales Clerk