Question
Based on the information below, find the first-year cost for Model A. Remember to use the concepts of Unique, Recurring, Relevant and Irrelevant Costs for
Based on the information below, find the first-year cost for Model A.
Remember to use the concepts of Unique, Recurring, Relevant and Irrelevant Costs for your calculations. For your answer. Do not use the dollar sign, do not use decimals, periods or commas. Round to the next unit.
| Model A | Model B | Model C | |
| New equipment cost (5 year lifespan) | $11.000 | $11.000 | $11.000 |
| Residual value | $1.200 | $900 | $1.100 |
| Initial installations costs | $200 | $250 | $200 |
| Initial training costs | $300 | $350 | $320 |
| Annual maintenance costs | $300 | $450 | $400 |
| Annual operating costs | $400 | $375 | $350 |
| Annual utilities costs | $350 | $350 | $350 |
| Annual employee wage costs | $12.000 | $12.000 | $12.000 |
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Fundamentals of Cost Accounting
Authors: William Lanen, Shannon Anderson, Michael Maher
3rd Edition
978-0077398194
