This problem continues the Davis Consulting, Inc. situation from Problem P24- 28 of Chapter 24. Davis Consulting provides consulting services at an average price of $ 175 per hour and incurs variable costs of $ 100 per hour. Assume average fixed costs are $ 5,250 a month. Davis has developed new software that will revolutionize billing for companies. Davis has already invested $ 200,000 in the software. It can market the software as is at $ 30,000 per client and expects to sell to eight clients. Davis can develop the software further, adding integration to Microsoft products at an additional development cost of $ 120,000. The additional development will allow Davis to sell the software for $ 38,000 each, but to 20 clients. Should Davis sell the software as is or develop it further?
Answer to relevant QuestionsDan Jacobs, production manager for GreenLife, invested in computer- controlled production machinery last year. He purchased the machinery from Superior Design at a cost of $ 3,000,000. A representative from Superior Design ...In 75 words or fewer, explain the difference between relevant costs, irrelevant costs, and sunk costs.Explain the role of the International Accounting Standards Board (IASB) in relation to International Financial Reporting Standards (IFRS).What does the income statement report?If a business had a net loss for the year, what would be the closing entry to close Income Summary and transfer the net loss to the Retained Earnings account?
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