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:

Protective Factor

Designates any attribute, characteristic, or condition that reduces a person’s risk of developing a problem or disorder.

Resilient

The ability to recover quickly from difficulties; emotional strength and toughness.

Stress

A psychological and physical response to demands or challenges, which can affect one's mental and physical health.

Behavior Therapy

Therapeutic approach using principles of learning theory to encourage desired behaviors or eliminate undesired ones; also called behavior modification.