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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
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 incremental earnings for the proposed new retail store?
a The original purchase price of the land where the store will be located.
b The cost of demolishing the abandoned warehouse and clearing the lot.
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 $ in market research spent to evaluate customer demand.
e Construction costs for the new store.
f The value of the land if sold.
g Interest expense on the debt borrowed to pay the construction costs.
a Should the original purchase price of the land where the store will be located be included in the incremental earnings for the proposed new retail store? Select from the dropdown menu.
b Should the cost of demolishing the abandoned warehouse and clearing the lot be included in the incremental earnings for the proposed new retail store? Select from the dropdown menu.
new retail store? Select from the dropdown menu.
e Should the construction costs for the new store be included in the incremental earnings for the proposed new retail store? Select from the dropdown menu.
f Should the value of the land if sold be included in the incremental earninas for the proposed new retail store? Select from the dropdown menu.
g Should the interest expense on the debt borrowed to pay the construction costs be included in the incremental earnings for the proposed new retail store? Select from the dropdown menu. No this should not be included or yes this should be included
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