Question
Very urgent, please help! Sally is opening a small shop where she will offer guided paint and sip classes that allow patrons to enjoy a
Very urgent, please help!
Sally is opening a small shop where she will offer guided paint and sip classes that allow patrons to enjoy a glass of wine or a craft beer while creating their own painting. She paid a real estate firm a finders fee to locate potential buildings for her. Now Sally has narrowed her decision down to two buildings to choose from. Shop A is in a high traffic area and needs a few renovations to set it up for painting classes. Shop A also has a bistro bar next door and the owner, Logan, was very enthusiastic about Sally's business venture, and suggested an idea for reciprocal marketing and discounts. Sally thinks the reciprocal plan would be a great business advantage. Shop B is in a lesser trafficked area of town, but the monthly cost would be about 20% less than Shop A and the building also has the advantage of being previously used for art instruction. Very little updating would be needed for Shop B, making the set-up costs much less than Shop A. Sally is having a hard time deciding which building to choose and is trying to sort out the relevant costs so she can make the best decision for her investment.
In one to two paragraphs, provide a rationale for the following:
Identify the four types of relevant costs that Sally will consider in her decision.
Briefly describe each of the four types of relevant costs and provide an example of each one using details from the scenario to support your rationale.
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