What is the relevant cost in each scenario

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Problem 1. Buy a drum sander, which would cost $1,250, and would cut his sanding time to one eighth.
Problem 2. Ask a semi-retired neighbor to do the sanding, using Adam's woodshop, supplies, and sanders, and pay $10 per hour-the same amount the neighbor earns in a current part-time job.
Problem 3. Take the boards to a local Amish woodshop that is a 45-minute drive (35 miles away). He would pay to use their drum sander-$50 per hour (in increments of one hour or part thereof)-that an employee would operate. This price includes all supplies for the drum sander

Sandpaper - for drum sander $0.60
cost per mile 0.46

what is the relevant cost in each scenario?

 

Reference no: EM133326074

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