Ask Question
4 January, 04:39

You have spent $1000 building a hot-dog stand based on estimates of sales of $2000. the hot-dog stand is nearly completed, but now you estimate total sales o be only $800. you can complete the hot-dog stand for another $300. Should you complete the hot-dog stand? (Assume that the hot dogs are costless to you.)

a. yes

b. no

c. there is not enough information

+2
Answers (1)
  1. 4 January, 06:51
    0
    correct answer is a. yes

    Explanation:

    given data

    spent = $1000

    estimates of sales = $2000

    total sales = $800

    hot-dog stand for another = $300

    solution

    we already spent here $1000 and assuming it is not recover

    so If you do nothing it will be sunk cost in future

    and

    when we spend $300 another and earn $800

    so we make here = $1000 + $300 - $800 = $500

    so we can lose $500

    so here lose $500 is better than lose $1000

    so correct answer is a. yes
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “You have spent $1000 building a hot-dog stand based on estimates of sales of $2000. the hot-dog stand is nearly completed, but now you ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers