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Solomon Freight Company owns a truck that cost $45,000. Currently, the truck's book value is $30,000, and its expected remaining useful life is four years.
Solomon Freight Company owns a truck that cost $45,000. Currently, the truck's book value is $30,000, and its expected remaining useful life is four years. Solomon has the opportunity to purchase for $24,000 a replacement truck that is extremely fuel efficient. Fuel cost for the old truck is expected to be $5,300 per year more than fuel cost for the new truck. The old truck is paid for but, in spite of being in good condition, can be sold for only $19.000 Required Calculate the total relevant costs. Should Solomon replace the old truck with the new fuel-efficient model, or should it continue to use the old truck until it wears out? Keep Old Replace With New Total relevant costs Should Solomon replace or continue the old truck? Replace the old truck JOBS Sweet Taste has the capacity to produce either 44,000 corncob pipes or 22,000 cornhusk dolls per year. The pipes cost $4.75 each to produce and sell for $11.00 each. The dolls sell for $13.50 each and cost $5.75 to produce Required Calculate the contribution margin per unit and the total contribution margin for Pipes and Dolls. Assuming that Sweet Taste can sella it produces of either product, should it produce the corncob pipes or the cornhusk dolls? (Round "Contribution margin per unit" answers to 2 decimal places.) Pipes Dolls Contribution margin per un Total contribution margin Should produce the comcob pipes or the cornhusk dolls
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