Question: A. $9,000 B. $33,000 C. $45,000 D. $55,000 Fuller Industries is considering replacing a machine that is presently used in its production process. Which of

Fuller Industries is considering replacing a machine that is presently used in

its production process. Which of the following amounts represents a sunk cost?

A. $9,000 B. $33,000 C. $45,000 D. $55,000

Fuller Industries is considering replacing a machine that is presently used in its production process. Which of the following amounts represents a sunk cost? 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 $9,000 $33,000 $45,000 $55,000 Old Machine $55,000 5 5 $33,000 $9,000 $0 $8,000 Replacement Machine $45,000 5 $0 $4,000

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