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1.Company A is using a two-year-old machine costing $24,000. The company uses straight-line depreciation, while...

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1.Company A is using a two-year-old machine costing $24,000. The company uses straight-line depreciation, while the machine has a useful life of 10 years. Company A is considering buying another machine costing $45,000 with a useful life of 9 years. The new machine won't have any effect on the number of units that a company produces. Company A, however, expects the variable cost to come down from $34,000 to $22,000. Fixed costs will also be the same at $20,000. Using the above information, determine which are relevant and which are irrelevant and the cost implication for the company. Provide a justification for your choice. (12 Marks) 14:41

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