In the decision to keep or replace an equipment, following data is given below old purchase cost
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Question:
In the decision to keep or replace an equipment, following data is given below
old purchase cost | $100 000 |
Total life of both old and new equipment | 4 years |
Annual depreciation cost | 25 000 |
Variable cost | 80 000 |
New equipment cost | 50 000 |
Total accumulated depreciation | 75 000 |
Calculate the total annual cost of keeping the old equipment.
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0136126638
13th Edition
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
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