Mathematics · Aptitude and Decision Making
A machine owned by a company has been idle for some months but could now be used on a one-year contract. The carrying value of the machine is $1,000. If not used on this contract, the machine could be sold now for a net amount of $1,200. After use on the contract, the machine would have no saleable value, and the cost of disposing of it in one year's time would be $800. What is the total relevant cost of the machine to the contract?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1$2,000✓
- 2$800
- 3$1,000
- 4$1,200
Correct answer
$2,000
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