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

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 Old Machine $45,000 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 $70,000 $30,000 $10,000 $0 $7,000 $0 $4,500 O A. $45,000 O B. $10,000 O C. $30,000 O D. $70,000

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