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QUESTION

Your friend has a salaried job earning RM 5,000 per month. He opens a small cafe without quitting his job.

Your friend has a salaried job earning RM 5,000 per month. He opens a small cafe without quitting his job. Monthly costs are RM 5,000 in rent and RM 3,000 to hire one barista, regardless of the number of coffees sold.

Question:

Your friend proposes that he quit his job and work at the cafe so that he doesn't have to pay for a barista. He says that this way the business will at least break even (make non-negative profit) selling 2500 coffees at RM 10 per coffee. What is your response to this proposal?

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