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serg [7]
3 years ago
8

Stephen is restoring a car and has already spent $4,000 on the restoration. he expects to be able to sell the car for $5800. ste

phen discovers that he needs to do an additional $2,400 of work to make the car worth $5,800 to potential buyers. he could also sell the car now, without completing the additional work, for $3,800. what should he do
Business
2 answers:
Korvikt [17]3 years ago
7 0

Answer:

Sell the car for $ 3 800

Explanation:

Thinking process:

The amount already spend = $ 4 000

a) To sell the car without additional work costs $ 5 800

The profit at that time will be $ 5 800 - $ 4 000 = $ 1 800

b) If he were to do additional work: $ 4000 + $ 2 400 = $ 6 400

That will be $ 6 400 - $ 5 800 = $ 600 (loss)

c) The loss will be better if he sells it for $  3 800 - $ 4 000 = $ 200

So it will be better to sell it at $ 3 800 with minimum loss.

Novay_Z [31]3 years ago
3 0
He should just seek the car for 3,800 if he was to continue with the restoration he would lose and extra 600 bucks. hes already lost 200 investing in the car already. so either way hes not making any sort of profit. hes just waiting his time.
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Answer: C. escalation of commitment

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The Town Council can see what has happened to the town and how their restaurants have suffered. The project has also stalled and yet they keep pushing it on. They are committed to an endevor that is not working out so this is an escalation of commitment bias.

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3 years ago
a company that reports a significant negative cash flow from investing activities due to the purchase of a building will most li
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5 0
1 year ago
The _______________ and the _____________________ along with the Funding Plan should be established early on in the Joint Capabi
LiRa [457]

Answer:

The correct answer is A

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$580,000 under applied.

Explanation:

The computation of the company's year end overhead is seen below;

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= Predetermined overhead rate × actual machine hours

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2 years ago
Atlantis Corporation has​ 12,000 shares of​ 14%, $78 par noncumulative preferred stock outstanding and​ 29,000 shares of​ no-par
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Answer:

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7 0
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