Title: The managers at Angelo's Pizza are considering replacing the pizza ovens used in their pizza ... Post by: LiChan on Dec 13, 2016 The managers at Angelo's Pizza are considering replacing the pizza ovens used in their pizza parlor. The parlor has six pizza ovens that were purchased at the start of business 20 years ago. (Note: All numbers presented are for the six ovens as a whole.)
Old New Pizza Ovens Pizza Ovens Cost $ 90,000 $ 100,000 Estimated useful life 15 years 10 years Estimated salvage value $ 5,000 $ 20,000 Current age 5 years N/A Estimated current fair value $ 30,000 N/A Annual operating cost $ 12,000 $ 6,000 REQUIRED: Prepare a relevant cost schedule showing the benefit of keeping the old pizza ovens or buying new ones. Are there other factors that should be taken into consideration before making their decision? Title: Re: The managers at Angelo's Pizza are considering replacing the pizza ovens used in their pizza ... Post by: suryoyo on Dec 14, 2016 Content hidden
Title: Re: The managers at Angelo's Pizza are considering replacing the pizza ovens used in their pizza ... Post by: LiChan on Jan 26, 2017 Was looking for this exact answer, thanks
Title: Re: The managers at Angelo's Pizza are considering replacing the pizza ovens used in their pizza ... Post by: suryoyo on Feb 14, 2017 Alright!
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