jubilee frozen foods purchased new computer-controlled production machinery last year from advanced design. the equipment was purchased for 4.1 million and was paid for with cash. a representative from advanced design recently contacted jubilee management because advanced design has an even more efficient piece of machinery available. the new design would double the production output of the equipment purchased last year but would cost jubilee another 5.0 million. the old machinery was installed by an engineering firm; the same firm would be required to install the new machinery…… etc…….
a) book value of old machine: NOT RELEVANTb) maintenance cost of new machine: NOT RELEVANTc) maintenance cost of old machine: NOT RELEVANTd) installation cost of new machine: RELEVANTe) accumulated depreciation on old machine: NOT RELEVANTf) cost per pound of food to be processed by the machinery: NOT RELEVANTg) installation cost of old machine: NOT RELEVANTh) cost of the new machine: RELEVANTi) cost of the old machine: NOT RELEVANT j) added profits from the increase in production resulting from the new machine: RELEVANTk) fixed selling costs: NOT RELEVANTl) variable selling costs: RELEVANTm) trade-in value of old machine: RELEVANTn) interest expense on new machine: RELEVANTo) sales tax paid on old machine: NOT RELEVANT