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Delaney Company is considering replacing equipment that originally cost $523,000 and has accumulated depreciation of $366,100 to date. A new machine will cost $873,000. The
Delaney Company is considering replacing equipment that originally cost $523,000 and has accumulated depreciation of $366,100 to date. A new machine will cost $873,000. The sunk cost in this situation is a. $156,900 b. $125,520 c. $523,000 d. $716,100 Sage Company is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $17.00 per unit. The unit cost for the business to make the part is $20.00, including fixed costs, and $9.00, not including fixed costs. If 34,975 units of the part are normally purchased during the year but could be manufactured using unused capacity, the amount of differential cost increase or decrease from making the part rather than purchasing it would be a a. $594,575 cost decrease b. $279,800 cost increase c. $104,925 cost increase d. $279,800 cost decrease
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