Question: Chapter 4 problems Relevant vs Irrelevant costs The manager at company XYZ just received the news that his transmission in his company truck went out.

Chapter 4 problems Relevant vs Irrelevant costs The manager at company XYZ just received the news that his transmission in his company truck went out. The cost of replacing the transmission with a new one will run $5000. The company just purchased the truck only two years ago for $25,000. If the company decided to replace the transmission, they will have put $20,000 additionally into the truck. The manager could sell the truck for $15,000 "as is", and purchase a new truck for $35,000. What should he do? Which of following are relevant costs when in the example? w ED Desktop 3 $ 96 & 4 6 7 8 9 R T T Y

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