A company is analyzing whether to keep or replace old equipment. The old equipment has a...

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A company is analyzing whether to keep or replace old equipment. The old equipment has a book value of $61,000 and a remaining five-year life. The new equipment has a five-year life, and can be bought for $112,800. The old equipment could be sold now for $66,000. The old equipment incurs variable manufacturing costs of $19,200 per year. The new equipment would incur variable manufacturing costs of $16,800 per year. Identify each item as a sunk cost, a relevant cost, or a relevant revenue. Item $19,200 book value of old equipment $112,800 per year variable manufacturing costs of old.equipment $61,000 selling price of old equipment $16,800 per year variable manufacturing costs of new equipment $66,000 price of new equipment A company is analyzing whether to keep or replace old equipment. The old equipment has a book value of $61,000 and a remaining five-year life. The new equipment has a five-year life, and can be bought for $112,800. The old equipment could be sold now for $66,000. The old equipment incurs variable manufacturing costs of $19,200 per year. The new equipment would incur variable manufacturing costs of $16,800 per year. Identify each item as a sunk cost, a relevant cost, or a relevant revenue. Item $19,200 book value of old equipment $112,800 per year variable manufacturing costs of old.equipment $61,000 selling price of old equipment $16,800 per year variable manufacturing costs of new equipment $66,000 price of new equipment