Quick Stop, Inc, operates a gas station and convenience store along with a car wash housed in a small building located adjacent to the store. The manager of Quick Stop is analyzing the costs and benefits of replacing ks old car wash machine with a new car wash machine that would provide customers with a more premium service and would lower Quick Stop's operating costs. The new car wash would ređuce maintenance and utility costs and would give customers the optioŋ of both washing and waxing their cars. Instead of investing funds in the new car wash machine, Quick Stop could purchase additional refrigeration units for the beverage section of its convenience store. Which of the following statements regarding the decision to replace the old car wash machine with a new car wash machine is not true?

• The cost of weekly maintenance on the car wash machine ia differential cost.

• The benefits of new beverage refrigeration units is an opportunity cost.

• The rental cost of the small building that houses the car wash is a differential cost.

• The cost of the old car wash machine is a sunk cost. O The utility costs associated with operating the car wash machine is a differential cost.

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Option a The weekly maintenance cost will be reduced by the new cash w... View the full answer