Janet works as a door-to-door salesperson for a vacuum cleaner producer. She has to decide whether to

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Janet works as a door-to-door salesperson for a vacuum cleaner producer. She has to decide whether to spend her hard-earned money on a new car, or an all-inclusive cruise around Asia with a friend.

Tickets for the cruise are £2,000, and include food, accommodation and all onboard services. Janet loves sightseeing, but excursions are not included in the price, so she plans to do only five excursions, costing £30 each. She also calculates that she will need £50 for souvenirs at each of the five destinations.

Janet has always dreamed of going to Asia. Her friend will be getting married soon, so this may be their last chance to travel together.

However, Janet’s car is vital for her job. It has broken down several times recently, and really needs to be replaced. A suitable car will cost £2,500, and she can sell her old car for approximately £500.

What opportunity costs should Janet consider to help her make her decision?

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Accounting And Finance For Business

ISBN: 9780273773948

1st Edition

Authors: Geoff Black, Mahmoud Al-Kilani

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