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

question 173

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:
$\begin{array}{lrr}&\text { Existing van }&\text { New van }\\\text { Ori ginal cost } & \$ 50,000 & \$ 90,000 \\\text { Annual operating cost } & \$ 17,500 & \$ 10,000 \\\text { Accumulated depreciation } & \$ 30,000 & - \\\text { Current salvage value of the existing van } & \$ 22,500 & -\\\text { Remaining life } & 10 \text { years } & 10 \text { years } \\\text { Salvage value in } 10 \text { years } & \$ 0 & \$ 0 \\\text { Annual depreciation } & \$ 2,000 & \$ 9,000\end{array}$
-Sunk costs include ________.

• A) the accumulated depreciation of the existing van
• B) the original cost of the new van
• C) the current salvage value of the existing van
• D) the annual operating cost of the new van

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Definitions:

Generation Y

Also known as Millennials, the demographic cohort following Generation X, typically considered to be born between the early 1980s and the mid-1990s to early 2000s.

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Individuals enrolled in institutions of higher education pursuing undergraduate, postgraduate, or doctoral degrees.

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Suppressed, curtailed, or inhibited, often referring to the restriction of growth, expression, or development.

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The act of resisting authority, control, or tradition, often manifested through dissent, protest, or revolutionary activities.