When Deciding to Lease a New Cutting Machine or Continue

question 24

Multiple Choice

When deciding to lease a new cutting machine or continue using the old machine, the irrelevant cost is ________.

• A) $50,000, cost of the old machine
• B) $20,000, cost of the new machine
• C) $10,000, selling price of the old machine
• D) $3,000, annual savings in operating costs if the new machine is purchased

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Definitions:

Middle Ear

The part of the ear located between the eardrum and the inner ear that contains three bones which amplify sound.

Hz

Hertz, the unit of frequency in the International System of Units (SI), denoting one cycle per second.

Ossicles

Small bones in the middle ear that transmit sound vibrations from the eardrum to the inner ear; includes the malleus, incus, and stapes.

Hammer

A tool with a heavy, typically metal head attached to a long handle, used for breaking things apart or driving in nails.