Assume exactly the same circumstances as in Activity 8.2, except that the garage is quite busy at

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Assume exactly the same circumstances as in Activity 8.2, except that the garage is quite busy at the moment. If a mechanic is to be put on the engine-replacement job, it will mean that other work that the mechanic could have done during the seven hours, all of which could be charged to a customer, will not be undertaken. The garage’s labour charge is £40 an hour, although the mechanic is paid only £12 an hour.

What is the minimum price at which the garage should sell the car, with a reconditioned engine fitted, under these altered circumstances?

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Accounting An Introduction

ISBN: 9780273711360

4th Edition

Authors: Harvey, Jenner Atrill, McLaney

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