Based on the information below, find the total costs for Model A. (first year and recurring costs, years 1 to 5 )

Remember to use the concepts of Unique, Recurring, Relevant and Irrelevant Costs for your calculations.
For your answer. Do not use the dollar sign, do not use decimals, periods or commas. Round to the next unit.

	Model A	Model B	Model C
New equipment cost (5 year lifespan)	$11.000	$12.000	$12.500
Residual value	$1.200	$900	$1.100
Initial installations costs	$200	$250	$200
Initial training costs	$300	$350	$320
Annual maintenance costs	$450	$300	$420
Annual operating costs	$375	$400	$425
Annual utilities costs	$350	$350	$350
Annual employee wage costs	$12.000	$12.000	$12.000

Answer rating: 100% (QA)

we can compute the cost based on the three concept relevant cost concept usually in terms of decisio... View the full answer