The only difference between Joe's and Moe's is that Joe's has old,fully depreciated equipment.Moe's just purchased all new equipment that will be depreciated over 8 years.Assuming all else equal,

Question

Quizplus · Accepted Answer

Since Joe's has fully depreciated equipment, they will have lower expenses and a higher profit margin compared to Moe's. Moe's, on the other hand, will have higher expenses due to depreciation, resulting in a lower profit margin. Therefore, the correct answer is Option D.

The Only Difference Between Joe's and Moe's Is That Joe's