Pemberley Marine Ltd has a boat that it acquired some months ago at a cost of £8,000. The boat needs a replacement engine before it can be used. It is possible to buy a new engine for £6,000. This would take eight hours to fit by a technician who is paid £16 an hour. At present the business is very busy and the technician could work on other boats. The normal charge out rate for the technician is £80 per hour. Without the new engine, the boat could be sold for an estimated £9,500. What is the minimum price at which the business should sell the boat with a new engine fitted? (Enter an integer.)
Pemberley Marine Ltd has a boat that it acquired some months ago at a cost of £8,000. The boat needs a replacement engine before it can be used. It is possible to buy a new engine for £6,000. This would take eight hours to fit by a technician who is paid £16 an hour. At present the business is very busy and the technician could work on other boats. The normal charge out rate for the technician is £80 per hour. Without the new engine, the boat could be sold for an estimated £9,500. What is the minimum price at which the business should sell the boat with a new engine fitted? (Enter an integer.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Pemberley Marine Ltd has a boat that it acquired some months ago at a cost of
£8,000.
The boat needs a replacement engine before it can be used. It is possible to buy a new engine for
£6,000.
This would take eight hours to fit by a technician who is paid
£16
an hour. At present the business is very busy and the technician could work on other boats. The normal charge out rate for the technician is
£80
per hour. Without the new engine, the boat could be sold for an estimated
£9,500.
What is the minimum price at which the business should sell the boat with a new engine fitted?
(Enter an integer.)
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