- 7 Canary Ltd Owns A Yacht That Is In Need Of Repair And Which Was Purchased For 6 800 The Company Is Working To Full 1 (59 KiB) Viewed 32 times
7. Canary Ltd. owns a yacht that is in need of repair and which was purchased for £6,800. The company is working to full capacity but is considering refurbishing the yacht for resale. Workers who are paid £20 per hour will carry out the refurbishment and it is estimated that 200 hours work is required. The normal labour charge for customers is £20 per hour. The company believes that the yacht could be sold for £6,200 in its current condition. Materials costing £1,000 would be required to carry out the refurbishment. Calculate the minimum resale price that the business would have to charge to justify the refurbishment of the yacht: A. £15,200 B. £11,200 C. £10,200 D. £6,200