You are preparing to operate a hot dog stand at an upcoming fair. Initially, you projected sales revenue of Rs 2000, and you have already invested Rs 1000 in constructing the stand. The stand is almost finished, but due to a scheduling conflict with a major music festival nearby, you now expect total sales to drop to Rs 800. It will cost an additional Rs 300 to complete the stand. According to the decision rule, you should proceed with finishing the stand if the cost of completion is less than what amount?
Explanation
The decision to complete the hot dog stand should be based on whether the additional cost to finish it is less than the expected revenue from sales. Since the revised expected sales amount to Rs 800, you should only continue if the completion cost is below Rs 800. Past expenses are sunk costs and should not influence this decision.