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Moving to another question will save this response. Question 29 In a make-or-buy decision, which of the following would not be relevant? A the portion
Moving to another question will save this response. Question 29 In a make-or-buy decision, which of the following would not be relevant? A the portion of fixed costs that could be eliminated by outsourcing B. the quality of the product C. property taxes on the plant that will still be necessary even if the product is outsourced D. a lease that could be discontinued upon accepting the "buy proposal" Moving to another question will save this response. svestran will save this response. Question 28 Stubing's Sporting Goods is considering replacing its existing delivery van with a new one. The new van can offer considerable savings in operating costs, information about the ea Existing van Original cost $56.000 Annual operating cost $22.500 New.yan $95.000 $15.000 Accumulated depreciation $33.000 Current salvage value of the existing van $27,500 Remaining life 10 years 10 years Salvage value in 10 years 50 50 Annual depreciation $2,300 $9.500 If Hartley's Meat Pies replaces the existing delivery van with the new one, over the next 10 years operating income will, a. decrease by $95,000 b. increase by $75,000 c. decrease by $75.000 d. increase by $95.000 A Moving to another question will save this response. Moving to another question will save this response. Question 27 An example of a sunk cost in a capital budgeting decision for new equipment is a. the necessary transportation costs on a new equipment b. the original price of an old equipment c. the initial investment in a new equipment d. the additional working capital needed for the new equipment Moving to another question will save this response
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