Question
Based on the information below, find the total costs for Model B. (first year and recurring costs, years 1 to 5 ) Remember to use
Based on the information below, find the total costs for Model B. (first year and recurring costs, years 1 to 5 )
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 | $12.000 | $12.500 |
| Residual value | $1.200 | $900 | $1.100 |
| Initial installations costs | $200 | $250 | $200 |
| Initial training costs | $300 | $350 | $320 |
| Annual maintenance costs | $450 | $300 | $420 |
| Annual operating costs | $375 | $400 | $425 |
| Annual utilities costs | $350 | $350 | $350 |
| Annual employee wage costs | $12.000 | $12.000 | $12.000 |
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
18th Edition
9781119790976
