Answer the Following Questions Using the Information Below:
Flowers for Everyone

question 156

Multiple Choice

Answer the following questions using the information below:
Flowers For Everyone is considering replacing its existing delivery van with a new one.The new van can offer considerable savings in operating costs.Information about the existing van and the new van follow:
$$\begin{array} { l r r } & \text { Existing van } & \text { New van } \\\text { Original cost } & \$ 100000 & \$ 180000 \\\text { Antual operating cost } & \$ 33000 & \$ 20000 \\\text { Accumulated depreciation } & \$ 60000 & - \\\text { Current salvage value of the existing van } & \$ 45000 & - \\\text { Remaining life } & 10 \text { years } & 10 \text { years } \\\text { Salvage value in 10 years } & \$ 0 & \$ 0 \\\text { Antual depreciation } & \$ 4000 & \$ 18000\end{array}$$
-If Flowers For Everyone replaces the existing delivery van with the new one,over the next 10 years operating profit will:

• A)decrease by $180 000.
• B)increase by $130 000.
• C)decrease by $130 000.
• D)None of these answers are correct.

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Definitions:

Rating Scale

A scale or system for measuring or evaluating the performance, level of agreement, or intensity of feelings on a linear or ordinal basis.

Numerical Line

A visual representation of numbers on a straight line, where each point corresponds to a number, often used to teach basic math concepts such as addition and subtraction.

Likert-Type Scale

Sometimes called graphic scales, this kind of rating scale contains a number of items that are being rated on the same theme and are anchored by both numbers and a statement that correspond to the numbers.

Semantic Differential

A scale used for measuring the connotative meaning of objects, events, and concepts, focusing on the qualitative aspects of attitudes.