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

question 94

Multiple Choice

Answer the following questions using the information below:
Pizza 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:
$\begin{array}{lrr}&\text { Existing van }&\text { New van }\\\text { Ori ginal cost } & \$ 50,000 & \$ 90,000 \\\text { Annual operating cost } & \$ 17,500 & \$ 10,000 \\\text { Accumulated depreciation } & \$ 30,000 & - \\\text { Current salvage value of the existing van } & \$ 22,500 & -\\\text { Remaining life } & 10 \text { years } & 10 \text { years } \\\text { Salvage value in } 10 \text { years } & \$ 0 & \$ 0 \\\text { Annual depreciation } & \$ 2,000 & \$ 9,000\end{array}$
-If Pizza For Everyone replaces the existing delivery van with the new one,over the next 10 years operating income will ________.

• A) decrease by $90,000
• B) increase by $75,000
• C) decrease by $75,000
• D) increase by $90,000

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Definitions:

Carbon

A chemical element with symbol C, fundamental to life and one of the most widely distributed elements in the universe, known for its ability to form various stable covalent bonds with other atoms.

Highest Oxidation

Refers to the maximum oxidation state an element can achieve in a compound, indicating the total number of electrons an atom can lose, gain, or share.

Organic Product

A chemical compound or substance that has been synthesized from organic (carbon-based) precursors.

Major Structure

The most stable or predominant arrangement of atoms in a molecule or the most significant resonance form of a compound when multiple structures are possible.