A candy company needs to purchase a new piece of manufacturing equipment. Vendor 1 has equipment...

 

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A candy company needs to purchase a new piece of manufacturing equipment. Vendor 1 has equipment that is priced at $150,000, has a capacity of 100 tons per day, and uses $1,000 in power consumption per day. Vendor 2 has equipment priced at $150,000, has a capacity of 125 tons per day, and uses $1,200 in power consumption per day. How should an accountant for the business factor the equipment price into the purchase decision? A candy company needs to purchase a new piece of manufacturing equipment. Vendor 1 has equipment that is priced at $150,000, has a capacity of 100 tons per day, and uses $1,000 in power consumption per day. Vendor 2 has equipment priced at $150,000, has a capacity of 125 tons per day, and uses $1,200 in power consumption per day. How should an accountant for the business factor the equipment price into the purchase decision?

Answer rating: 100% (QA)

When evaluating the purchase decision for the manufacturing equipment from Vendor 1 and Vendor 2 an accountant for the business should consider the eq... View the full answer