15 00:25:07 A company is analyzing whether to keep or replace old equipment. The old equipment...

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15 00:25:07 A company is analyzing whether to keep or replace old equipment. The old equipment has a book value of $60,000 and a remaining five-year life. The new equipment has a five-year life, and can be bought for $111,600. The old equipment could be sold now for $65,000. The old equipment incurs variable manufacturing costs of $18,400 per year. The new equipment would incur variable manufacturing costs of $16,000 per year. Identify each item as a sunk cost, a relevant cost, or a relevant revenue. Item Skepped $65,000 per year variable manufacturing costs of new equipment $16,000 price of new equipment $111,600 book value of old equipment $18,400 per year variable manufacturing costs of old equipment $60,000 selling price of old equipment Relevant cost Relevant revenue Sunk cost Identify each item as a sunk cost, a relevant cost, or a relevant revenue. & 00:24:48 Skipped Item $65,000 per year variable manufacturing costs of new equipment $16,000 price of new equipment $111,600 book value of old equipment $18,400 per year variable manufacturing costs of old equipment $60,000 selling price of old equipment 15 00:25:07 A company is analyzing whether to keep or replace old equipment. The old equipment has a book value of $60,000 and a remaining five-year life. The new equipment has a five-year life, and can be bought for $111,600. The old equipment could be sold now for $65,000. The old equipment incurs variable manufacturing costs of $18,400 per year. The new equipment would incur variable manufacturing costs of $16,000 per year. Identify each item as a sunk cost, a relevant cost, or a relevant revenue. Item Skepped $65,000 per year variable manufacturing costs of new equipment $16,000 price of new equipment $111,600 book value of old equipment $18,400 per year variable manufacturing costs of old equipment $60,000 selling price of old equipment Relevant cost Relevant revenue Sunk cost Identify each item as a sunk cost, a relevant cost, or a relevant revenue. & 00:24:48 Skipped Item $65,000 per year variable manufacturing costs of new equipment $16,000 price of new equipment $111,600 book value of old equipment $18,400 per year variable manufacturing costs of old equipment $60,000 selling price of old equipment