Question
Just part 3 please Wendells Donut Shoppe is investigating the purchase of a new $42,900 donut-making machine. The new machine would permit the company to
Just part 3 please
Wendells Donut Shoppe is investigating the purchase of a new $42,900 donut-making machine. The new machine would permit the company to reduce the amount of part-time help needed, at a cost savings of $5,800 per year. In addition, the new machine would allow the company to produce one new style of donut, resulting in the sale of 2,000 dozen more donuts each year. The company realizes a contribution margin of $2.00 per dozen donuts sold. The new machine would have a six-year useful life.
Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using tables. Links for Exhibits: http://lectures.mhhe.com/connect/007802563x/exhibit_13b-1.jpg http://lectures.mhhe.com/connect/007802563x/exhibit_13b-2.jpg |
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