1. James has spent $100,000 renovated his house and he plans to sell it for $800,000. However, for the house to be worth $800,000, he needs to spend another $80,000 to refurbish the kitchen. Without refurbishing the kitchen, he could sell the house at $700,000. Should he refurbish the kitchen before selling? Why, or why not? Explain.

2. Aunty Grace makes fresh soya drinks every morning. Any soya drinks not sold by the end of the day is thrown away (all the charitable homes refuse to take any leftover from her). A cup of soya drink costs $1.00 to produce, and she charges her customers $5 per cup. Suppose near the end of one rainy day, Aunty Grace still has 15 unsold cups of soya drinks. At what price should she sell the remaining soya drinks? Explain.