Question

Cole is refinishing an antique china cabinet and has already spent $180 on the restoration. He expects to be able to sell the cabinet for $360. Cole discovers that he needs to do an additional $200 worth of work to make the cabinet worth $360 to potential buyers. He could also sell the cabinet now, without completing the additional work, for $100. What should Cole do

Answer 1

Answer:

Cole should complete the additional work and sell the cabinet for $360.

Explanation:

If Cole sells the cabinet now for $100 and taken into account that he has already spent $180, this means that:

$100-$180= -$80

He would be losing $80.

On the other side, if he completes the additional work, he would sell the cabinet $360. However, his expenses would be:

$180+$200= $380

Now, you have to subtract the costs from the selling price:

$360-$380= -$20

This means that he would lose $20.

According to that, Cole should complete the additional work because he would be lose less money.