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dusya [7]
3 years ago
6

Jarett Motors is trying to decide whether it should keep its existing car washing machine or purchase a new one that has technol

ogical advantages (which translate into cost savings) over the existing machine. Information on each machine follows: Old machine New machine Original cost $9,000 $20,000 Accumulated depreciation 5,000 0 Annual cash operating costs 9,000 4,000 Current salvage value of old machine 2,000 Salvage value in 10 years 500 1,000 Remaining life 10 yrs 10 yrs Refer to Jarett Motors. The $4,000 of annual operating costs that are common to both the old and the new machine are an example of a(n):________ a. opportunity cost b. irrelevant cost c. future avoidable cost d. sunk cost
Business
1 answer:
raketka [301]3 years ago
5 0

Answer:

The correct option is <u>b. irrelevant cost</u>.

Explanation:

An irrelevant cost can be described as an expense that will not be affected by the decisions of thee management. Therefore, irrelevant costs are those that will not change if you choose one option over another in the future.

Therefore, the $4,000 of annual operating costs that are common to both the old and the new machine are an example of irrelevant cost. This is because the 4,000 of annual operating costs will not be affected or will still be incurred whether Jarett Motors managment decide to keep its existing car washing machine or purchase a new one.

Therefore, the correct option is <u>b. irrelevant cost</u>.

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Answer:

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3 years ago
2.<br> The stud of economics is basically about what two things?
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Explanation:

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4 years ago
If a company has five employees with annual salaries of $40,000, $90,000, $40,000, $30,000, and $80,000, respectively, what is t
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Mean is where you add all of the values together and then divide the total by the number of values.

 After doing this, you should see this...

20,000+40,000+20,000+60,000+70,000 = 210,000

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6 0
3 years ago
Taco Hut purchased equipment on May 1, 2018, for $15,000. Residual value at the end of an estimated 8-year service life is expec
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Answer:

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Explanation:

Giving the following information:

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7 0
4 years ago
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