Question

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?.

Answer 1

Based on the amount that Savion would have to spend additionally, he should sell the car now because he would make more profit.

Why should Savion sell the car now?

If Savio makes additional work on the car, the profit would be:

= 5,800 - 2,400

= $3,400

This is as opposed to the $3,800 he could make from selling the car at $3,800 so the best thing to do is to sell the car.

Find out more questions on incremental costs at https://brainly.com/question/15279458.

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