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QUESTION 20 Jesse spent $6000 on a computer system that no one can use. She can spend $100,000 on training or spend $25,000 to buy
QUESTION 20 Jesse spent $6000 on a computer system that no one can use. She can spend $100,000 on training or spend $25,000 to buy a better user friendly system. The $6000 is a O opportunity cost O sunk cost O joint cost O relevant cost QUESTION 21 Division 2 has sales of $110,000, variable costs of $80,000 and applied fixed costs of $40,000. Should I eliminate this division? O No, it contributes $30,000 to fixed costs O yes, you'll increase profits by $10,000 yes, you'll increase profits by $80,000 O yes, you'll decrease fixed costs by $40,000 QUESTION 22 Machine 1 with a 5 year life has a net present value of $30,000 and a payback period of 2 years Which one of the following statements best describes the Machine 1: O Buy this machine because it has a postive present value and you'll get your money back. O Don't buy this machine. You are not getting your desired return. This machine will have to be scrapped before the end of it's useful life. O You'll never get your money back from this machine
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