Question

Question S 1 out of 1 points Thomas Corporation is looking to purchase a new printer called Printer Z 5000 because the old printer called the Robin 5 2000 has been constantly breaking down and is in need of a major repair. Which of the following costs would be considered IRRELEVANT to Thomas's Corporation's decision to either purchase the Printer Z 5000 or repair the Robin S 20007 Selected Answer Purchase price of the Robin 5 2000 (old printer) 1 out of 1 points Question 6 Hicks Co. can further process Product B to produce Product C. Product B is currently selling for $30 per pound and costs $28 per pound to produce. Product C would sell for $55 per pound and would require an additional cost of $31 per pound to produce. What is the incremental cost of producing Product C? Selected Answer: $31 per pound
i need explanation how to calculate question 5 and question 6 , thank you

Answer 1

5. Robin S 2000 (Old Printer) Purchase price is a sunk cost which is incurred long ago. Thus it is irrelevant and is not required to consider while taking a decision about purchasing Z 5000 (new printer) or repairing the Robin S 2000.

6. Incremental cost of producing of Product C is the cost which is required to make Product C by further processing Product B. Thus the incremental cost is only $31 per pound.