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ToastyTime is trying to decide whether it should keep its existing industrial toaster or purchase a new one that toast more efficiently (which translate into
ToastyTime is trying to decide whether it should keep its existing industrial toaster or purchase a new one that toast more efficiently (which translate into cost savings)compared to the existing toaster. Information on each toaster follows:
Old toaster | New toaster | |
Original cost | $10,000 | $25,000 |
Accumulated depreciation | 6,000 | 0 |
Annual cash operating costs | 9,500 | 5,000 |
Current salvage value of old toaster | 2,500 | |
Salvage value in 10 years | 650 | 1,200 |
Remaining life | 12 yrs. | 12 yrs. |
The incremental cost to purchase the new toaster is
Group of answer choices
$15,000.
$25,000.
$22,500.
In the formula y = a + bX, y represents
Group of answer choices
fixed costs.
variable costs.
total cost.
mixed costs.
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