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Free_Kalibri [48]
2 years ago
6

When a business is considering whether to replace old equipment with newer equipment, the cost of operating the old equipment-co

mpared to the cost of operating the new equipment-is information relevant to the business decision.
a. True.
b. False.
Business
1 answer:
vekshin12 years ago
8 0

Yes its true statement

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Dingo Division’s operating results include: controllable margin of $150,000, sales totaling $1,200,000, and average operating as
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Answer:

<u>Dingo should reject this project </u>

<u />

Explanation:

sales - operating expenses = controllable margin

controllable margin/operating asset = return on assets

100,000 sales - 86,000 expenses = 14,000

14,000/200,000 = 0.07 = 7%

This project yield 7% which is lower than Ding required rate of return of 9%

Dingo should reject this project of finance it through a lower cost of capital.

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Answer:

True

Explanation:

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2 years ago
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the answer is a

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7 0
3 years ago
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Explanation:

Step 1 – Locating and Defining Issues or Problems. ...

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