Mike wanted to work for a CPA firm, but he also wanted to work on his parents’ farm in Montana. Because the CPA firm wanted Mike to be happy, it offe
Mike wanted to work for a CPA firm, but he also wanted to work on his parents’ farm in Montana. Because the CPA firm wanted Mike to be happy, it offered to let him work for the firm as an independent contractor during the fall and winter and return to Montana to work for his parents during the spring and summer. He was very excited to hear that the firm was also going to give him a 5 percent higher “salary” for the six months he would be working for the firm over what he would have made over the same six-month period if he worked full time as an employee (i.e., an increase from $30,000 to $31,500). Should Mike be excited about his 5 percent raise? Why or why not? What counteroffer could Mike reasonably suggest?