Evaluate the arguments of the two partners

Assignment Help Managerial Accounting

Reference no: EM13816051

Two partners own together a small landscaping business in North Carolina, called Summer Lawn Care. They have been specializing in summer grass seeding, installation, and maintenance. Recently, the partners acquired special technology and know-how for winter grass installations and maintenance. They also added a tree cutting service as recent storms in the area had caused demand for this service to soar. One of the partners insists that the name of the business should change to Lawn and Tree Care, so that it better reflects the range of services and, thus, generates more customer interest, and thus contracts. The second partner wants to keep the old name and argues, "We have already paid for business cards, vehicle paint, signage, and ads in Yellow Pages".

1. Evaluate the arguments of the two partners.

2. Explain and illustrate their points by identifying the relevant and irrelevant costs for this decision.

3. Identify all the costs in the decision process, including explicit costs, implicit costs and sunk costs.

Reference no: EM13816051

Questions Cloud

Compare and contrast stationary forecasting model approach : Compare and contrast the stationary forecasting model approach with that of a time series forecasting approach. Identify and explain key factors that are relevant in the selection of a specific approach.

Anxiety and stress disorders presentation : Anxiety and Stress Disorders Presentation

How high entry barriers into a market will influence : Describe how high entry barriers into a market will influence long-run profitability of the firms - Explain the competitive pressures that are present in markets with high barriers to entry.

Is calley liable for the repairs : Calley accordingly gave Bailey a written agreement stipulating that he would cover all necessary repairs for a period of one year free of charge. At the end of nine months the car required overhauling and Bailey had the repairs made at Calley's ga..

Evaluate the arguments of the two partners : Evaluate the arguments of the two partners - Explain and illustrate their points by identifying the relevant and irrelevant costs for this decision.

Can albrect recover against justin : Justin's subsequently reported the suspected theft to the state's unemployment agency, and Albrect was denied unemployment benefits. Albrect sued Justin's for damages for breach of contract. Can Albrect recover against Justin's

How did the chambermaid respond to bornets advances : How did the chambermaid respond to Bornet's advances? What did she tell her mistress, and what did Bornet's wife advise her to do?

What arguments will pacific and soldano use : Meanwhile, the price of silver had fallen substantially and continued to fall. When Soldano refused to pay for the silver, Pacific sold it for $4,650, sustaining a loss of $8,328. Pacific sued Soldano to recover the loss. What arguments will Pa..

Integrate various psychoeducational or supportive approaches : Identify and integrate various psychoeducational or supportive approaches

User Account

All Pages