Savion is restoring a car and has already spent $4,000 on the restoration. He expects to be able to sell the car for $5800. Savion discovers that he needs to do an additional $2,400 of work to make the car worth $5,800 to potential buyers. He could also sell the car now, without completing the additional work, for $3,800. What should he do?

Question

Quizplus · Accepted Answer

Savion should sell the car now for $3,800 because if he spends an additional $2,400, his total cost will be $6,400, and he will only sell it for $5,800, resulting in a loss. Selling now minimizes his loss.

Savion Is Restoring a Car and Has Already Spent $4,000