*or be rebuilt for $10,000 and be new

on 26 pper Tool Company has plenty of excess capacity to accept a special order Shown below is and reason? Status Qu $133.00 51.20 25,60 S512 54.40 26 60 $52,00 Yes, since the goal ls to fil capacy as much as possible to keep fxed overhead variances as low as possible Yes, since operatin No, the company stion 27 A truck, costing 530,000 and uninsured, was wrecked the very first day t was used The truck can oither be dsposed for $5000 cash and roplaced with sii tk csting $38.00 "new" as far as operating characteristics and looks are concerned The net relevant cost of the replacing option is: $36,000 $33,000 s3 1,000 O $38,000 o $16,000