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Ahoi Ltd. owns a cruiser yacht that is in need of repair. The yacht was taken in lieu of payment for an unpaid bill for
Ahoi Ltd. owns a cruiser yacht that is in need of repair. The yacht was taken in lieu of payment for an unpaid bill for 4.000. Ahoi Ltd. Is working to full capacity but is considering refurbishing the yacht for sale. Workers who are paid 10/h will carry out the work and it is estimated that 200 hours of work is required. The normal labor charge for customers is 25/h. The company believes that the cruiser yacht could be sold in its current condition for 3.800. Materials costing 600 would be required to carry out the refurbishment. These materials are currently in stock as they are frequently used by the company. Required: What is the minimum resale price that the business would have to charge to justify the refurbishment
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