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model. The CSULB Inc. is considering the replacement of a piece of equipment with a newer following data has been collected: 7. Price $225,000 $375,000

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model. The CSULB Inc. is considering the replacement of a piece of equipment with a newer following data has been collected: 7. Price $225,000 $375,000 90,0000- 240,000 Estimated annual operating costs 300,000 If the old equipment is replaced now, it can be sold for $60,000. The net advantage (disadvantage) of replacing the old equipment for the 5-year period is: a) S(135,000). b) $(75,000). c) S(15,000). d) $120,000. A cost that cannot be changed by any present or future decision is a(n) a) incremental cost. 8. b) opportunity cost c) sunk cost. d) variable cost. 9. A company that is a price taker would most likely use which of the following methods? a) Time-and-material pricing b) Target costing. c) Cost plus pricing, contribution approach. d) Cost plus pricing, absorption approach. 10. Brislin Products has a new product going on the market next year. The following data ane projections for production and sales: Variable costs Fixed costs ROI Investment Sales $250,000 $450,000 14 $2,000,000 200,000 units What is the target selling price per unit? a) $4.90 b) $3.65. c) $3.50 d) $2.65

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