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?

Question

Quizplus · Accepted Answer

If Cole completes the additional work and sells the cabinet for $360, he will have spent a total of $380 on the restoration, but will also be able to sell the cabinet for $360, resulting in a profit of $-20. Selling the cabinet now for $100 would result in a loss of $80, and keeping the cabinet without doing the additional work would also result in a loss of $20. Therefore, completing the additional work and selling the cabinet for $360 is the best option, as it results in the highest potential profit.

Cole Is Refinishing an Antique China Cabinet and Has Already