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3 (37 marks) (44 minutes) Picture Perfect Ltd is in the digital printing industry and makes use of digital litho printers that are fit for

3 (37 marks) (44 minutes) Picture Perfect Ltd is in the digital printing industry and makes use of digital litho printers that are fit for high quality production output. The operations manager evaluated the performance of the printers and brought it to the attention of the financial manager that one of the older digital litho printers needs to be replaced to ensure high quality production output. Existing printer New printer Current tax value R100 000 Cost price R200 000 R250 000 Current realisable value R180 000 Realisable value after 4 years R40 000 R60 000 Working capital R35 000 R50 000 Sales generated by printer per annum R350 000 R450 000 Fixed cost R100 000 R150 000 Variable cost

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