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Which sofa should sally purchase

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Reference no: EM132640108

Sally wants to purchase a new sofa because she purchased a new heme at the beach. Sally visited two stores and she narrowed down her choices to a red sofa and a blue sofa. Sally owns pets so she considers the cost of insurance to Insure each sofa. Sallyr complied the following data and she realizes that the sales tax to purchase the sofa is 113% in her state. 

                  Red sofa       Blue Sofa.

Price            8,000                8,400

Insurance         950                     350

Problem 1: Which sofa should Sally purchase? What costs are relevant in her decision? Why?

Reference no: EM132640108

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