Question
Based on the information below, find the total recurring costs, years 1 to 5 for Model B. Remember to use the concepts of Unique, Recurring,
Based on the information below, find the total recurring costs, years 1 to 5 for Model B.
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 | $400 | $375 | $350 |
| Annual utilities costs | $350 | $350 | $350 |
| Annual employee wage costs | $12.000 | $12.000 | $12.000 |
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Computerized Accounting Using QuickBooks Pro 2020
Authors: Alvin A. Arens, D. Dewey Ward, Carol J. Borsum
6th Edition
0912503793, 9780912503790
