No. 4 Q4. 1. Calculate Relevant Cost based on the information given. Sale $200000 per year Fixed cost other than depreciation, are $40000/- 2. Should the manager purchase the new machine? New Machine: List price $90000 Annual Variable Expenses $ 70000 Expected life years = 5 Old Machine: Original Cost $125000 Remaining Book Value $ 75000 Disposal value now $30000 Annual Variable expenses $100000 Remining life in years = 5