original cost. 72000 remaining Sunk Costs are not Relevant...
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Accounting
original cost. 72000 remaining
Sunk Costs are not Relevant Costs i manager at White Co. wants to replace an old machine with a new, more efficient machine. New machine: List price $ 90,000 Annual variable expenses 80,000 Expected life in years 5 Old machine: Original cost $ 72,000 Remaining book value 60,000 Disposal value now 15,000 Annual variable expenses 100,000 Remaining life in years 5 q White's sales are $200,000 per year. Fixed expenses, other than depreciation, are $70,000 per year
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