Question: Blue Sky Catering is considering whether to retain or replace its aging delivery truck. The old truck originally cost ( $ 60,000 ) when it

Blue Sky Catering is considering whether to retain or replace its aging delivery truck. The old truck originally cost \\( \\$ 60,000 \\) when it was purchased nine years ago. It has a book value of \\( \\$ 6,000 \\). According to the mechanic who serviced the truck during its last oil change, the old truck has 4 years of useful life left. Blue Sky Catering wants to purchase a brand-new truck. The new truck costs \\( \\$ 68,000 \\) and has a 10 -year useful life, after which it will have no salvage value. The new truck is a little larger and would accommodate larger jobs, leading to an additional \\( \\$ 10,000 \\) per year in contribution margin. It would also have a refrigerated section that would reduce waste by \\( \\$ 600 \\) each year. As the truck will be new, repairs and maintenance costs will also decrease from \\( \\$ 2,300 \\) to \\( \\$ 1,400 \\) annually. The old truck can be sold for \\( \\$ 8,000 \\)
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