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Author Question: White Water Tours is considering the purchase of a new tour boat. They are faced with choosing ... (Read 58 times)

Beheh

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on: Jan 4, 2020
White Water Tours is considering the purchase of a new tour boat. They are faced with choosing between the Wave Runner and the Split Hull models. The boats are comparable on performance and both meet the company's needs equally. Both boats have an expected useful life of five years at which time they will be sold. The following information has been gathered to assist in making the purchase decision:

​WAVE RUNNERSPLIT HULL
Purchase price$110,350$121,900
Fuel cost over useful life29,68028,430
Insurance cost over useful life60,00060,000
Estimated repairs and maintenance15,49017,380
Revenue generated over useful life575,000575,000
Estimate selling price at end of useful life22,75018,500

Required:
A. Which if any of the listed costs above are not relevant to your decision?
B. What are the total relevant costs of purchasing the Wave Runner?
C. What are the total relevant costs of purchasing the Split Hulla?
D. What is the differential cost involved in your decision?
Managerial Accounting, Canadian Edition ¦ Braun, Tietz, Pyper ¦ 2nd Edition
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Marked as best answer by Beheh on Jan 4, 2020

paavo

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Reply #1 on: Jan 4, 2020
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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Beheh

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Reply 2 on: Jan 4, 2020
Great answer, keep it coming :)

Jossy

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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