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Sunshine Fruit Co. makes its own shipping boxes. The annual cost to make 80,000 boxes is: Suppose Mayerhouser offers to sell them boxes for $2.60
Sunshine Fruit Co. makes its own shipping boxes. The annual cost to make 80,000 boxes is: Suppose Mayerhouser offers to sell them boxes for $2.60 per box How much, if any, will Sunshine Fruit save by buying the boxes? Suppose that all the above fixed costs are depreciation for equipment purchased at $600,000 which is at the end of its 10-year life. New replacement equipment will cost $800,000 and have a 10-year life also. How much, if any, will Sunshine Fruit save by buying the boxes under these circumstances
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