Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Floral Charms offers free delivery as a service to its customers. For years, a local delivery company has provided the service. Business has increased substantially
Floral Charms offers free delivery as a service to its customers. For years, a local delivery company has provided the service. Business has increased substantially and, on average, deliveries per month are made. The delivery firm has just increased its charges to $ for every delivery.Maja Horvat, the owner, has asked the store accountant to compare the present delivery charges with the cost of buying and operating the company's own van. The accountant has determined several facts: A delivery van would cost $ The van would last four years and then would be worth $ as a tradein The driver's salary would be about $ per hour, including all fringe benefits; the driver would work an average of hours per week. Insurance, repairs and maintenance, licenses, and fuel would average $ per year.
Questions: What is more economical, buying the delivery equipment or using the services of the cartage firm?
Question : List factors other than costs that could affect the decision.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started