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Al Dahiyah company normally runs at capacity and the model p99 machine is the company's...

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Accounting

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Al Dahiyah company normally runs at capacity and the model p99 machine is the company's production constraint. Management is considering purchasing a new machine, Model P100 and selling the P99. The P100 is more efficient and can produce 30% units more than the P99. If the company purchase model P100, there should be a reduction in maintenance costs. The company will need to borrow money in order to purchase the P100. The increase in the quantity will require increases in fixed selling and administrative cost, but general administrative expenses will remain unchanged. Required: For each of the items below, indicate by placing an X in the appropriate column whether it should be considered in the decision to replace model P99 with model P100. (a) relevant cost or irrelevant cost, and (b) Differential Cost, Sunk Cost, and/or Opportunity Cost. (If none of categories is applicable leave all columns blank)

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