Question: Fuller Industries is considering replacing a machine that is presently used in its production process. Which of the following amounts represents a sunk cost? Replacement


Fuller Industries is considering replacing a machine that is presently used in its production process. Which of the following amounts represents a sunk cost? Replacement Machine $46,000 5 0 Original cost Remaining useful life in years Current age in years Book value Current disposal value in cash Future disposal value in cash (in 5 years) Annual cash operating costs Old Machine $70,000 5 5 $30,000 $10,000 $0 $8,000 $0 $4,500 A. $70,000 B. $30,000 C. $10,000 D. $46,000 Crabapples, Inc. purchases and sells boxes of dried fruit. The following information summarizes its operating activities for the year: Selling Expenses Merchandise Inventory on December 31 Merchandise Inventory on January 1 Purchases of merchandise Rent for store Sales commissions Sales revenue $9,900 33,500 46,800 84,000 12,800 7,500 163,000 What is the cost per box of dry fruits if Crabapples sold 4,000 boxes of dry fruit during the year? (Round your answer to the nearest cent.) A. $40.75 B. $32.70 C. $8.38 D. $24.33
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