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Product C would sell for $82 per pound and would require an additional cost of $13 per pound to produce. What is the differential revenue of
Product C would sell for $82 per pound and would require an additional cost of $13 per pound to produce. What is the differential revenue of producing and selling Product C? a. $22 per pound b. $42 per pound c. $45 per pound d. $18 per pound ANS: A DIF: Difficult OBJ: 25-01 NAT: AACSB Analytic | IMA-Decision Analysis 13. Wilson Company is considering replacing equipment which originally cost $500,000 and which has $460,000 accumulated depreciation to date. A new machine will cost $790,000. What is the sunk cost in this situation? A. $330,000 b. $500,000 c. $40,000 d. $290,000 ANS: C DIF: Difficult OBJ: 25-01 NAT: AACSB Analytic | IMA-Decision Analysis 14. Mathews Company is considering replacing equipment which originally cost $500,000 and which has $460,000 accumulated depreciation to date. A new machine will cost $790,000 and the old equipment can be sold for $8,000. What is the sunk cost in this situation?
