Lisbon Corporation is analyzing the following costs with respect to its decision to expand production...
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Accounting
Lisbon Corporation is analyzing the following costs with respect to its decision to expand production and sales volume: New delivery equipment cost, $220,000. Annual depreciation expense on the new delivery equipment, $22,000. . Old delivery equipment cost, $153,000. Annual depreciation expense on the old delivery equipment, $15,300. Annual decrease in utilities cost, $1,900. Annual increase in advertising costs, $7,300. Annual increase in sales, $86,000. Annual increase in cost of goods sold, $26,000. . Annual increase in sales commissions, $1,500. Annual increase in shipping costs, $200. How much is the differential annual net operating income? Multiple Choice $31,300 $30.900 $59,600 $46,200
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