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Question 33 Marigold Corp. has several outdated computers that cost a total of $17800 and could be sold as scrap for $5800. They could be
Question 33 Marigold Corp. has several outdated computers that cost a total of $17800 and could be sold as scrap for $5800. They could be updated for an additional $2800 and sold. If Marigold updates the computers and sells them, net income will increase by $9000. What amount would be considered sunk costs? $20600 0 $9000 O $17800 0 $2800 Question 34 Bramble Corp. is considering the replacement of a piece of equipment with a newer model. The following data has been collected: Purchase price Old Equipment New Equipment $195000 $320000 78000 - 0 - 257000 203000 Accumulated depreciation Annual operating costs If the old equipment is replaced now, it can be sold for $52600. Both the old equipment's remaining useful life and the new equipment's useful life is 5 years. Which of the following amounts is irrelevant to the replacement decision? 0 $267400 $117000 $52600 $320000 Question 35 A company has three product lines, one of which reflects the following results: Next $244000 141000 Sales Variable expenses Contribution margin Fixed expenses 103000 130000 $ (27000) Net loss If this product line is eliminated, 60% of the fixed expenses can be eliminated and the other 40% will be allocated to other product lines. If management decides to eliminate this product line, the company's net income will o increase by $27000. o decrease by $103000. O decrease by $25000. o increase by $25000
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