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a machine is no longer used by a company.it could be sold now for net proceeds of $300.its only other use is on a short-term contract which is under consideration.the variable running cost of the machine during the period of the contract would be $400.on completion of the contract the machine would have no realisable value and would cost $150 to dismantle and remove
what is the total relevant cost of using the machine on the contract?
loss of proceeds-300
running cost-400
dismantle-150
equal 850
could u explain it why i take 300 as loss of proceeds?
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