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

question 84

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

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

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Definitions:

Phallic

Referring to the third stage in Freud's psychosexual stages of development, focusing on the pleasure zone of the genitals.

Latent

Hidden or dormant, not currently visible, active, or symptomatic, but with the potential to emerge or become active.

Genital

Refers to the reproductive organs in both males and females, often discussed in the context of sexual development and function.

Anal

Related to the anus; often used in the context of anal sex or anal hygiene.