Final answer:
The main answer is evaluating the annual financial benefit of $32,400 from a new computerized pressure cooker by considering increased sales and reduced operating costs, requiring a cost-benefit analysis including equipment costs and financial implications.
Step-by-step explanation:
The question relates to a business decision about the potential financial benefits of investing in a new computerized pressure cooker for a hot dog business. To analyze this decision, we need to consider the additional annual sales and the reduction in operating costs that the new cooker is expected to bring. Increased sales are anticipated to be $15,900 per year, while operation costs are projected to decrease by $16,500 annually. When combining these two figures, we get a total expected annual financial benefit of $32,400 ($15,900 from increased sales plus $16,500 from reduced costs).The company would need to weigh this benefit against the cost of the new pressure cooker, including its purchase price, installation expenses, and any potential financing charges if the equipment is bought on credit. They should also consider the depreciation of the cooker over its useful life and any potential tax benefits from investment deductions or credits. After considering these factors, the company can determine if the investment is financially justified.In conclusion, the main answer to the question is a calculation of the total expected annual financial benefit from the new pressure cooker installation. It is essential for the business to perform a cost-benefit analysis and consider all financial implications before making the investment decision.