Suppose that you get excited about getting into rock climbing and spend $200 on new gear. However, after a weekend of trying out your new sport you decide it just isn't for you. Turns out, gear shops don't take used climbing gear back. In fact, it is hard to sell used gear too. You decide to sell it online to whoever is willing to give you the best offer. If it would cost you $20 to ship the gear to someone, what is the least you would accept for the gear? A. $20 because the $200 is sunk. B. $200 because that is what you spent on the gear. C. $220 because that is the cost of the gear and the cost of getting it to the buyer. D. None of the above.

Suppose that you get excited about getting into rock climbing and spend $200 on new gear. However, after a weekend of trying out your new sport you decide it just isn't for you. Turns out, gear shops don't take used climbing gear back. In fact, it is hard to sell used gear too. You decide to sell it online to whoever is willing to give you the best offer. If it would cost you $20 to ship the gear to someone, what is the least you would accept for the gear? A. $20 because the $200 is sunk. B. $200 because that is what you spent on the gear. C. $220 because that is the cost of the gear and the cost of getting it to the buyer. D. None of the above.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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