Mike has spent $800 purchasing and repairing an old motorcycle,which he expects to sell for $1,200.He discovers that he needs an additional repair,which will cost $200.He can sell the motorcycle as it is now for $400.What should he do

Question

Quizplus · Accepted Answer

If Mike completes the additional repair for $200, his total cost will be $1,000 ($800 + $200), and he can sell it for $1,200. This means he will make a profit of $200. Whereas if he sells the motorcycle as it is now for $400, he will make a loss of $400 ($800 - $400). Therefore, completing the repair and selling the motorcycle is the best choice.

Mike Has Spent $800 Purchasing and Repairing an Old Motorcycle,which