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The Good Cause (TGC) is a not-for-profit organisation operating in Hornsby that employs people with physical disabilities. TGC focuses on training and developing manufacturing and
The Good Cause (TGC) is a not-for-profit organisation operating in Hornsby that employs people with physical disabilities. TGC focuses on training and developing manufacturing and other work skills for the differently abled community. The organisation is popular because of a number of their 'alumni' working in local businesses. They are the only provider of such a service in the city and there is currently a waiting list of people seeking employment with TGC. Business Issue One of the organisation's activities is to bake 'theme' cakes that are sold (by customer order) in its retail store. Several years ago, TGC purchased a special oven. As of Dec 31, 2023, this oven will have been used for 3 years. Management is considering the purchase of a newer, more efficient oven. If purchased, the new oven would be acquired on Dec 31, 2023. Management expects to sell 30,000 cakes in each of the next five years in TGC's retail outlet. The selling price of the cakes is expected to average $180. The firm uses the straight-line depreciation method. The Good Cause has two options: continue to operate the old oven or to sell the old oven and purchase the new oven. No
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