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John Moffat.
John Moffat.-
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adarsh1997
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I am referring to the following post:
https://opentuition.com/topic/relevant-costing-68/1. Why $11,000 lost income is not an opportunity cost? If we replace it, we are loosing the chance of earning more money?
John Moffat
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If we buy a new the machine that we will not be losing the income (because we will still have the old one) !!!
adarsh1997
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I am still referring to the previous post.
1. “If they take the machine for the new order, they have the choice of either replacing the machine and so paying $10,000”
– If they take the machine, why they would need to replace it?
If they use the machine they will not be able to earn an income of $11,000John Moffat
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They would be silly not to replace it because they would be paying 10,000 so that they could continue to earn 11,000, which is worth doing.
adarsh1997
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