Question
Juan currently owns a 2009 Honda civic. To save money, he is considering replacing the 2229 Honda Civic with a 2012 Honda motorcycle. The following
Juan currently owns a 2009 Honda civic. To save money, he is considering replacing the 2229 Honda Civic with a 2012 Honda motorcycle. The following is a list of some of the costs to consider.
Car | Motorcycle | |
2021 Honda Motorcycle | $7,000 | |
Monthly Parking | $50 | 60 |
Annual Insurance | 1440 | 2160 |
advertising to sell car | 75 | |
annual gas costs | 7500 | 3500 |
If Juan buys a motorcycle, we wants secured underground parking rather then the surface parking he currently has for his car. Juan expects the Honda Civic can be sold for 7,000. Determine costs Determine costs and revenues that are relevant to Juan's decision. Explain your choices and state the specific amounts. Also explain the reason for omitting costs if any
relevant costs | relevant revenues | |
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