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Mountain Gear has been using the same machines to make its name brand clothing for the last five years. A cost efficiency consultant has suggested
Mountain Gear has been using the same machines to make its name brand clothing for the last five years. A cost efficiency consultant has suggested that production costs may be reduced by purchasinis tore technologically advanced machinery. The old machines cost the company $370.000 The old machines presently have a book value of $137000 and a market value of $29.000. They are expected to have a five-year remaining life and reso salvage value. The new machines would cost the company 5270.000 and have operating expenses of $17.000 a year The new machines are expected to have a five-year stude and no savage value. The operating expenses associated with the old machines are $47000 a year. The new machines are expected to increase quality. justifying a price increase and thereby increasing sales revenue by $27000 a yea Select the true statement Me Choice The company will be 529.000 better till over the year period it at replaces the old equipment The company will be $44.000 better off over the period of replaces the oldet The company will be $45.000 beter of over the year period if it replaces the old equipment o The combi 57000 better off over the period is the old equipment
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