The Sheila Cabot Construction Company (SCCC) is building a local stadium. They need an office at the stadium site. SCCC can build the office themselves with material costing $50,000 and labor costs of $13,000. When the company takes apart the building at the end of the project, 20% of the material would be reusable. Alternatively, SCCC can rent a pre-fabricated building at a cost of $1,000 per month with no set- up or dismantling costs. It will benefit SCCC to build the office if it expects the stadium project to exceed: a. 36 months b. 50 months C. 53 months d. 63 months
The Sheila Cabot Construction Company (SCCC) is building a local stadium. They need an office at the stadium site. SCCC can build the office themselves with material costing $50,000 and labor costs of $13,000. When the company takes apart the building at the end of the project, 20% of the material would be reusable. Alternatively, SCCC can rent a pre-fabricated building at a cost of $1,000 per month with no set- up or dismantling costs. It will benefit SCCC to build the office if it expects the stadium project to exceed: a. 36 months b. 50 months C. 53 months d. 63 months
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![The Sheila Cabot Construction Company (SCCC) is building a local
stadium. They need an office at the stadium site. SCCC can build the
office themselves with material costing $50,000 and labor costs of
$13,000. When the company takes apart the building at the end of the
project, 20% of the material would be reusable. Alternatively, SCCC can
rent a pre-fabricated building at a cost of $1,000 per month with no set-
up or dismantling costs. It will benefit SCCC to build the office if it
expects the stadium project to exceed:
a. 36 months
b. 50 months
C. 53 months
d. 63 months](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F868bbe15-0e09-40b9-9468-547e3aff056a%2F43f60034-38db-4cb6-91ab-a4f57738da4c%2F04dwx3g_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The Sheila Cabot Construction Company (SCCC) is building a local
stadium. They need an office at the stadium site. SCCC can build the
office themselves with material costing $50,000 and labor costs of
$13,000. When the company takes apart the building at the end of the
project, 20% of the material would be reusable. Alternatively, SCCC can
rent a pre-fabricated building at a cost of $1,000 per month with no set-
up or dismantling costs. It will benefit SCCC to build the office if it
expects the stadium project to exceed:
a. 36 months
b. 50 months
C. 53 months
d. 63 months
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