You are the CPA for Vachon Stores. Read the following case and write a 1 to...

  

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You are the CPA for Vachon Stores. Read the following case and write a 1 to 2 page memo, answering the questions below in proper Business memo format. Delivery Costs Vachon Stores offers free delivery as a service to its customers. For years, a local delivery company has provided the service. Business has increased substantially and, on average, 300 deliveries per month are made. The delivery firm has just increased its charges to $20 for every delivery. K. Vachon, the owner, has asked the store accountant to compare the pres- ent delivery charges with the cost of buying and operating the company's own van. The accountant has determined several facts: • A delivery van would cost $37 000. • The van would last four years and then would be worth $ 1o o00 as a trade-in. • The driver's salary would be about $27 per hour, including all fringe benefits; the driver would work an average of 30 hours per week. • Insurance, repairs and maintenance, licences, and fuel would average $8950 per year. A) Prepare a table that will clearly and effectively compare all of the costs of owning the Van versus using the services of the delivery firm. B) Describe other factors, other than cost, for owning the Van versus using the services of the delivery firm. C) In a concluding paragraph, provide your recommendation with at least 3 key reasons to defend you answer. You are the CPA for Vachon Stores. Read the following case and write a 1 to 2 page memo, answering the questions below in proper Business memo format. Delivery Costs Vachon Stores offers free delivery as a service to its customers. For years, a local delivery company has provided the service. Business has increased substantially and, on average, 300 deliveries per month are made. The delivery firm has just increased its charges to $20 for every delivery. K. Vachon, the owner, has asked the store accountant to compare the pres- ent delivery charges with the cost of buying and operating the company's own van. The accountant has determined several facts: • A delivery van would cost $37 000. • The van would last four years and then would be worth $ 1o o00 as a trade-in. • The driver's salary would be about $27 per hour, including all fringe benefits; the driver would work an average of 30 hours per week. • Insurance, repairs and maintenance, licences, and fuel would average $8950 per year. A) Prepare a table that will clearly and effectively compare all of the costs of owning the Van versus using the services of the delivery firm. B) Describe other factors, other than cost, for owning the Van versus using the services of the delivery firm. C) In a concluding paragraph, provide your recommendation with at least 3 key reasons to defend you answer.

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