ToastyTime is trying to decide whether it should keep its existing industrial toaster or purchase a new one that toast more efficiently (which translate into cost savings)compared to the existing toaster. Information on each toaster follows:

	Old toaster	New toaster
Original cost	$10,000	$25,000
Accumulated depreciation	6,000	0
Annual cash operating costs	9,500	5,000
Current salvage value of old toaster	2,500
Salvage value in 10 years	650	1,200
Remaining life	12 yrs.	12 yrs.

The incremental cost to purchase the new toaster is

Group of answer choices

$15,000.

$25,000.

$22,500.

In the formula y = a + bX, y represents

Group of answer choices

fixed costs.

variable costs.

total cost.

mixed costs.