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Assume that a fast-food chain is considering replacing all of its deep fryers. The new fryers use less energy to operate than the existing fryers.

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Assume that a fast-food chain is considering replacing all of its deep fryers. The new fryers use less energy to operate than the existing fryers. Two costs that have been discussed by various employees with respect to this decision include (1) the utility cost (or energy cost) that would continue to be incurred if the company decides to keep its existing fryers, and (2) the price the company could charge to sell its existing fryers (also called the fryers' salvage value). Which of the following choices properly classifies each of these costs as being relevant or irrelevant in the decision to "keep or replace" the fryers? Cost: Utility Cost Cost: Associated with Keeping the Existing Salvage Value of the Fryers Existing Fryers Relevant Irrelevant Relevant Irrelevant A) Yes B) No C) D) Yes No Yes Yes No No No No Yes Yes Yes Yes No No Multiple Choice Choice A Choice Choice

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