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Planet Design Services, Inc., is considering replacing a machine. The following data are available:

Jeslinn

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5 years ago

Planet Design Services, Inc., is considering replacing a machine. The following data are available:

Planet Design Services, Inc., is considering replacing a machine. The following data are available:

Replacement
Old MachineMachine
Original cost$630,000$510,000
Useful life in years126
Current age in years60
Book value$350,000
Disposal value now$122,000
Disposal value in 6 years00
Annual cash operating costs$102,000$59,000

Which of the data provided in the table is a sunk cost?
A) the annual cash operating costs of the old machine
B) the annual cash operating costs of the replacement machine
C) the disposal value of the old machine
D) the original cost of the old machine

Textbook

Cost Accounting: A Managerial Emphasis

Edition: 16^th

Authors: Horngren, Datar, Rajan

Read 54 times

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elizabetheldrid

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5 years ago

More solutions for this book are available here

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Jeslinn Author

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5 years ago

Smart ... Thanks!

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