5. A cost incurred in the past that is irrelevant to any future decision is a(n) a. sunk cost. b. opportunity cost. c. standard cost. d. budget cost. 6. Landau Co. is deciding whether to replace of an old machine with a new one. The following information is available: Old Machine Purchase cost sunk cost Remaining useful life 10 years Useful life -0- Annual operating costs $24,000 New Maching $60,000 -0- 10 years $18,000 If the old machine is replaced, it can be sold for $24,000. The change in net income for 10 years from replacing the old machine is a. $24,000 increase - b. $0 (zero) c. $30,000 decrease d. $6,000 increase 7. A company has sufficient factory capacity to fill a special customer order at a reduced sales price. It is trying to decide whether the order should be accepted. The order will not affect regular sales. If the company accepts the special order, what will occur? a. Differential costs will not be affected. b. Profit will decrease if the reduced sales price per unit exceeds the unit variable costs. C. Profit will increase if the unit variable costs are less than the reduced sales price. d. Profit will decrease if the unit contribution margin exceeds the reduced sales price