For these two separate cases, identify each item as a sunk cost, a relevant cost, or...

 

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For these two separate cases, identify each item as a sunk cost, a relevant cost, or a relevant revenue. 1. A company is considering replacing an old machine. The old machine has a book value of $53,500 and a remaining five-year life. The old machine can be sold now for $58,500. The new machine can be purchased for $103,500. 2. A company spent $5,500 to make shirts. Customer tastes have changed and the shirts cannot be sold for their normal price. The shirts can be sold as is to another manufacturer to make into rags for $4,500. Instead, the company can spend $9,500 to rework the shirts with different designs. The reworked shirts can be sold for $13,500. Complete this question by entering your answers in the tabs below. Required 1 Required 2 A company is considering replacing an old machine. The old machine has a book value of $53,500 and a remaining five-year life. The old machine can be sold now for $58,500. The new machine can be purchased for $103,500. Item $58,500 selling price of old machine $103,500 price of new machine $53,500 book value of old machine < Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 A company spent $5,500 to make shirts. Customer tastes have changed and the shirts cannot be sold for their normal price. The shirts can be sold as is to another manufacturer to make into rags for $4,500. Instead, the company can spend $9,500 to rework the shirts with different designs. The reworked shirts can be sold for $13,500. Item $9,500 cost to rework shirts $13,500 selling price of reworked shirts $5,500 already spent to make shirts < Required 1 Required 2 > For these two separate cases, identify each item as a sunk cost, a relevant cost, or a relevant revenue. 1. A company is considering replacing an old machine. The old machine has a book value of $53,500 and a remaining five-year life. The old machine can be sold now for $58,500. The new machine can be purchased for $103,500. 2. A company spent $5,500 to make shirts. Customer tastes have changed and the shirts cannot be sold for their normal price. The shirts can be sold as is to another manufacturer to make into rags for $4,500. Instead, the company can spend $9,500 to rework the shirts with different designs. The reworked shirts can be sold for $13,500. Complete this question by entering your answers in the tabs below. Required 1 Required 2 A company is considering replacing an old machine. The old machine has a book value of $53,500 and a remaining five-year life. The old machine can be sold now for $58,500. The new machine can be purchased for $103,500. Item $58,500 selling price of old machine $103,500 price of new machine $53,500 book value of old machine < Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 A company spent $5,500 to make shirts. Customer tastes have changed and the shirts cannot be sold for their normal price. The shirts can be sold as is to another manufacturer to make into rags for $4,500. Instead, the company can spend $9,500 to rework the shirts with different designs. The reworked shirts can be sold for $13,500. Item $9,500 cost to rework shirts $13,500 selling price of reworked shirts $5,500 already spent to make shirts < Required 1 Required 2 >

Answer rating: 100% (QA)

For case 1 Item 58500 selling price of old machine Relevant revenue The revenue generated from selli... View the full answer