Question: A manager invests $ 2 0 , 0 0 0 in equipment that would help the coepany reduce its per unit coss from $ 1
A manager invests $ in equipment that would help the coepany reduce its per unit coss from $ to $ The manager expects the equipment to be in use for the neat seven years. After two years, the manager's boss the senior manager realizes that If production were ousourced, the unit cost would be $ instead. What should the senior manager do
Charge the munager for the next five years of deperciation.
Write off the equipment as surk cous and allow for outsourcing sliese it is cheaper than consinuing to produce in house.
Not allow for ouslourcing slace the equipment is good for another five years.
Continue producing in house for two more years until the equament is flilly paid off and then outrource production.
None of the above
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