26. Hi-Tech Inc. has several outdated computers that cost a total of $8,900 and could be sold as scrap for $2,300. They could be updated for an additional $1,200 and sold. If Hi-Tech updates the computers and sells them, net income will increase by $4,500. Reference: Ref 7-6 What amount would be considered sunk costs? A) $1,200 B) $4,500 C) $8,900 D) $10,100 27. Sala Co. is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine New Machine Price $250,000 $500,000 Accumulated Depreciation 75,000 -0- Remaining useful life 10 years -0- Useful life -0- 10 years Annual operating costs $200,000 $150,500 If the old machine is replaced, it can be sold for $20,000. Which of the following amounts is relevant to the replacement decision? A) $175,000 B) $250,000 C) $49,500 D) $75,000 28. The point in the production process when joint products are readily identifiable is the A) separation point. B) split-off point. C) common point. D) break-even point