Question: C . Company A is using a two - year - old machine costing $ 2 4 , 0 0 0 . The company uses
C Company A is using a twoyearold machine costing $ The company uses straightline depreciation, while the machine has a useful life of years.Company A is considering buying another machine costing $ with a useful life of years. The new machine wont have any effect on the number of units that a company produces. Company A however, expects the variable cost to come down from $ to $ Fixed costs will also be the same at $ Using the above information, determine which are relevant and which are irrelevant and the cost implication for the company. Provide a justification for your ch
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