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1.Raven 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 2. A business received an offer from an exporter for 20,000 units of product at $15 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available:
What is the differential revenue from the acceptance of the offer? a. $300,000 b. $420,000 c. $120,000 d. $240,000
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