A revenue that differs between alternatives and makes a difference in decision-making is called a(n) sales revenue. incremental revenue. unavoidable revenue. O irrelevant revenue. A cost that cannot be changed by any present or future decision is aln) sunk cost. incremental cost opportunity cost O opportunity cost. In a retain or replace equipment decision, trade-in allowance available on old equipment increases the cost of the new equipment O is not relevant to the decision. is relevant because it will not be realized if the old equipment is retained. increases the cost of the new equipment Eddy Company is starting business and is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $60 and Eddy Company would sell it for $135. The cost to assemble the product is estimated at $27 per unit and Eddy Company believes the market would support a price of $174 on the assembled unit. What is the correct decision using the sell or process further decision rule? Process further, the company will be better off by $12 per unit Sell before assembly, the company will be better off by $27 per unit Sell before assembly, the company will be better off by $39 per unit Process further, the company will be better off by $39 per unit. The decision rule on whether to sell or process further varies from situation to situation. is process further as long as total revenue exceeds present revenues is process further if incremental revenue from such processing exceeds incremental fixed costs. is process further if incremental revenue from such processing exceeds the incremental processing costs 8 A company contemplating the acceptance of a special order has the following unit cost behavior, based on 10,000 units: Direct materials $ 4 Direct labor 10 Variable overhead Fixed overhead 6 A foreign company wants to purchase 2,000 units at a special unit price of $25. The normal price per unit is $40. In addition, a special stamping machine will have to be purchased for $4,000 in order to stamp the foreign company's name on the product. The incremental income (loss) from accepting the order is $6,000. O $2,000. O $12,000). $16,000)