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The Elberta Fruit Farm of Ontario has always hired transient workers to pick its annual cherry crop. Janessa Wright, the farm manager, just received information
The Elberta Fruit Farm of Ontario has always hired transient workers to pick its annual cherry crop. Janessa Wright, the farm manager, just received information on a cherry picking machine that is being purchased by many fruit farms. The machine is a motorized device that shakes the cherry tree, causing the cherries to fall onto plastic tarps that funnel the cherries into bins. Ms Wright has gathered the following information to decide whether a cherry picker would be a profitable investment for the Elberta Fruit Farm: Currently, the farm is paying an average of $ per year to transient workers to pick the cherries. The cherry picker would cost $ It would be depreciated using the straightline method and it would have no salvage value at the end of its year useful life. Annual outofpocket costs associated with the cherry picker would be: cost of an operator and an assistant, $; insurance, $; fuel, $; and a maintenance contract, $
The Elberta Fruit Farm of Ontario has always hired transient workers to pick its annual cherry crop. Janessa Wright, the farm manager, just received information on a cherry picking machine that is being purchased by many fruit farms. The machine is a motorized device that shakes the cherry tree, causing the cherries to fall onto plastic tarps that funnel the cherries into bins. Ms Wright has gathered the following information to decide whether a cherry picker would be a profitable investment for the Elberta Fruit Farm:
Currently, the farm is paying an average of $ per year to transient workers to pick the cherries.
The cherry picker would cost $ It would be depreciated using the straightline method and it would have no salvage value at the end of its year useful life.
Annual outofpocket costs associated with the cherry picker would be: cost of an operator and an assistant, $; insurance, $; fuel, $; and a maintenance contract, $
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