A company XYZ is into the manufacturing of kid toys. They manufacture different kinds of small or big size toys, soft toys, and automatic toys. They initially spent P100,000 on purchasing equipment and machinery for their manufacturing plant. Over time, due to the change in the toy industry, the company needed advance kind of machinery, and the board has decided to replace old machinery with a new one. The company has sold old machinery at P20,000. How much is the sunk cost of the machinery?
A company XYZ is into the manufacturing of kid toys. They manufacture different kinds of small or big size toys, soft toys, and automatic toys. They initially spent P100,000 on purchasing equipment and machinery for their manufacturing plant. Over time, due to the change in the toy industry, the company needed advance kind of machinery, and the board has decided to replace old machinery with a new one. The company has sold old machinery at P20,000. How much is the sunk cost of the machinery?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company XYZ is into the manufacturing of kid toys. They manufacture different kinds of small or big size toys, soft toys, and automatic toys. They initially spent P100,000 on purchasing equipment and machinery for their manufacturing plant. Over time, due to the change in the toy industry, the company needed advance kind of machinery, and the board has decided to replace old machinery with a new one. The company has sold old machinery at P20,000. How much is the sunk cost of the machinery?
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