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Andre45 [30]
1 year ago
12

Andrew is deciding whether to remain in the home he has lived in for the past ten years, which is located very near his work, or

to move into a newer home that is located in the suburbs farther from his job. The old house was purchased for $160,000 and has a market value of $220,000. The new home can be purchased for $285,000. Which of the following is not relevant to Andrew's decision?
a. Driving distance to work
b. Cost of the old house
c. Market value of the old house
d. Cost of the new house
Business
1 answer:
vekshin11 year ago
4 0

Answer:

The decision that is not relevant to Andrew is:

b. Cost of the old house.

Explanation:

a) The cost of the old house ($160,000) is not relevant to Andrew decision challenges.  It is a sunk or past cost.  Past costs are not relevant because they do not make a difference in the decision or the alternative to choose.  Since Andrew will be impacted by the driving distance to work from his new house, the market value of the old house, and the cost of the new house, these are relevant in Andrew's decision.

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Answer & Explanation:

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2- Prepare an amortization table for the instalment note.

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1 year ago
LO 3.4If the sales mix in a multi-product environment shifts to a higher volume in low contribution margin products, the break-e
kompoz [17]

Answer:

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Its impact depends upon the portfolio of products company is managing. It means it increases breakeven with high effects if the products in sales mix 2 to 3.

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