Question
1. Buy a drum sander, which would cost $1,250, and would cut his sanding time to one eighth. 2. Ask a semi-retired neighbor to do
1. Buy a drum sander, which would cost $1,250, and would cut his sanding time to one eighth. 2. Ask a semi-retired neighbor to do the sanding, using Adam's woodshop, supplies, and sanders, and pay $10 per hourthe same amount the neighbor earns in a current part-time job. 3. Take the boards to a local Amish woodshop that is a 45-minute drive (35 miles away). He would pay to use their drum sander$50 per hour (in increments of one hour or part thereof)that an employee would operate. This price includes all supplies for the drum sander
Sandpaper - for drum sander | $0.60 |
cost per mile | 0.46 |
what is the relevant cost in each scenario?
Step by Step Solution
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Step: 1
Heres a breakdown of the relevant costs in each scenario for Adams sanding project Scenario 1 Buying a Drum Sander 1250 Relevant Cost 1250 onetime purchase Scenario 2 Hiring a Neighbor 10hour Relevant ...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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