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Answer questions A through G Homework: M3: Chapter 8 Homework Save Score: 0 of 1 pt 2 of 123 completely HW Score: 25%, 3 of
Answer questions A through G
Homework: M3: Chapter 8 Homework Save Score: 0 of 1 pt 2 of 123 completely HW Score: 25%, 3 of 12 pts P8-3 (similar to) Question Help Home Builder Supply, a retailer in the home improvement industry, currently operates seven reta outlets in Georgia and South Carolina Management is contemplating building an eighth retail store across town from its most successful retail outlet. The company already owns the land for this store, which currently has an abandoned warehouse located on it. Last month, the marketing department spent $13,000 on market research to determine the extent of customer demand for the new store. Now Home Builder Supply must decide whether to build and open the new store. Which of the following should be included as part of the incrementaleamings for the proposed new retail store? a. The cost of the land where the store will be located b. The cost of demolishing the abandoned warehouse and clearing the lol. c. The loss of sales in the existing retail outlet, if customers who previously drove across town to shop at the existing outlet become customers of the new store instead d. The $13,000 in market research spent to evaluate customer demand e. Construction costs for the new store f. The value of the land if sold. There is currently an offer of $13,000 from an interested buyer g. Interest expense on the debt borrowed to pay the construction costs a. Should the cost of the land where the store will be located be included in the incremental earnings for the proposed new retail store (Select from the drop-down menu.) Yes, this item should be included No, this item should not be included as part of the incremental earnings when eva vating the proposal Click to select your answers) and then click Check Answer 6 parts remaining CA
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