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Author Question: John's 8-year-old Chevrolet Trail Blazer requires repairs estimated at $10,000 to make it road ... (Read 46 times)

jessicacav

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Question 1

In evaluating different alternatives, it is useful to concentrate on ________.
◦ variable costs
◦ fixed costs
◦ total costs
◦ relevant costs

Question 2

John's 8-year-old Chevrolet Trail Blazer requires repairs estimated at $10,000 to make it road worthy again. His wife, Sherry, suggested that he should buy a 5-year-old used Jeep Grand Cherokee instead for $10,000 cash. Sherry estimated the following costs for the two cars:

Trail Blazer  Grand Cherokee
Acquisition cost$25,000$10,000
Repairs$10,000-
 Annual operating costs
(Gas, maintenance, insurance)$2,780$1,800
The cost NOT relevant for this decision is the ________.
◦ acquisition cost of the Trail Blazer
◦ acquisition cost of the Grand Cherokee
◦ repairs to the Trail Blazer
◦ annual operating costs of the Grand Cherokee


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Marked as best answer by jessicacav on Mar 6, 2021

Jbrasil

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jessicacav

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Reply 2 on: Mar 6, 2021
Great answer, keep it coming :)


ryansturges

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Reply 3 on: Yesterday
Excellent

 

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