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
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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.
Transcribed Image Text: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.
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