Question
A firm bought a pizza oven for $13,500 and if it shut down now, could sell the oven for $9,500. Which of the following statements
A firm bought a pizza oven for $13,500 and if it shut down now, could sell the oven for $9,500. Which of the following statements is TRUE?
A. This firm has no avoidable costs.
B. The relevant cost of the oven when considering shutting down is $23,000.
C. The firm's fixed cost is $13,500 and $4,000 is avoidable.
D. The avoidable cost is $9,500.
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The Handbook Of Mergers And Acquisitions
Authors: David Faulkner, Satu Teerikangas, Richard J. Joseph
1st Edition
0199601461, 978-0199601462
