Auto Shoppe is considering the purchase of a new engine computer code reader for $65,000. Auto Shoppe can charge S75 for the service of reading the codes from a single car engine, while the actual cost of the reading would only be $10 per car engine. Please answer the following two questions, based on this information. Suppose that the manager of Auto Shoppe is concerned about this purchase, and has stated that if Auto Shoppe were to buy the new engine computer code reader, “.the machine needs to pay for itself by the time we use it to read the codes of 200 car engines." The manager says this is because, “...those sorts of engine computer code readers go out of date very quickly, so if we don't get our money back soon, we will probably just wind up replacing the machine before it ever breaks even." What would Auto Shoppe need to charge for the service of reading each car engine, to break-even when it reads the codes from 200 car engines? O a. $45 Ob. $150 Oc. $205 d. $335 e. $75
Auto Shoppe is considering the purchase of a new engine computer code reader for $65,000. Auto Shoppe can charge S75 for the service of reading the codes from a single car engine, while the actual cost of the reading would only be $10 per car engine. Please answer the following two questions, based on this information. Suppose that the manager of Auto Shoppe is concerned about this purchase, and has stated that if Auto Shoppe were to buy the new engine computer code reader, “.the machine needs to pay for itself by the time we use it to read the codes of 200 car engines." The manager says this is because, “...those sorts of engine computer code readers go out of date very quickly, so if we don't get our money back soon, we will probably just wind up replacing the machine before it ever breaks even." What would Auto Shoppe need to charge for the service of reading each car engine, to break-even when it reads the codes from 200 car engines? O a. $45 Ob. $150 Oc. $205 d. $335 e. $75
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter11: Strategic Cost Management
Section: Chapter Questions
Problem 6E: Keith Golding has decided to purchase a personal computer. He has narrowed his choices to two: Brand...
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