Andrew has decided to open an online store that sells home and garden products. After searching around, he chooses the software company Initech to provide the software for his website since their product required the least amount of specialized investments for him to use it. They agreed upon price of $6,000. To use Initech's software, Andrew makes $1,800 in sunk capital investments and spends 45 hours learning how to use Initech's software, which is very different from other software packages. Both Andrew and Initech view Andrew's time as worth $30 per hour and Initech is fully aware of the investments Andrew must make to use their product. After Andrew's investments were made, Initech came to Andrew and asked for more money. How much do you think they asked for?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Andrew has decided to open an online store that sells home and garden products. After searching around, he chooses the software company ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Assume the company is considering a reduction in the selling price by $10 per unit and an increase in advertising budget by $5,000. This will increase sales volume by 50%.
Answers (1)
Of the fixed factory overhead costs, $72,000 are avoidable. Another company has offered to sell 5,000 units of the same part to Gonzalez for $70.00 per unit.
Answers (1)
All differences between super-variable costing and absorption costing are explained by: A. the accounting for direct materials and manufacturing overhead costs. B. the accounting for direct labor and direct materials. C.
Answers (1)
National income accountants can avoid multiple counting by: A) including transfers in their calculations B) counting both intermediate and final goods C) only counting final goods D) only counting intermediate goods
Answers (1)
Quantas Industries sold $300,000 of consumer electronics during January under a one-year warranty. The cost to repair defects under the warranty is estimated at 6% of the sales price.
Answers (1)
New Questions in Business
If the market price for a chair is $24 and the marginal cost for the chai is $7, the marginal revenue from the chair would be?
Answers (1)
Which best describes the difference between sole proprietorships and partnerships?
Answers (1)
After totaling the receipts in the petty cash box, Kelly Garrett Detective Agency spent $65 on Office Supplies and $145 on Auto Expense. The journal entry to record the reimbursement to the petty cash fund would include:a.
Answers (2)
A country reported nominal GDP of $200 billion in 2010 and $180 billion in 2009. It also reported a GDP deflator of 125 in 2010 and 105 in 2009. Between 2009 and 2010, how much did prices increase?
Answers (1)
Philadelphia Swim Club is planning for the coming year. Investors would like to earn a 10% return on the company's $37,000,000 of assets. The company primarily incurs fixed costs to maintain the swimming pool.
Answers (1)