CoolStools Inc. produces unique chairs and stools. The company is considering re

Question

CoolStools Inc. produces unique chairs and stools. The company is considering renting a new labor-saving machine. Sales would not change, however, the direct labor costs would decrease by $2 per unit and the rental cost of the machine would be $5,000. Which of the following would be relevant factors in CoolStools decision? Variable Costs Fixed Costs Sales Irrelevant Relevant Relevant Relevant IrrelevanRelevant Relevant Relevant rrelevant Irrelevant Relevant Irrelevant Irrelevant,Irrelevant,Relevant Relevant,Relevant,Irrelevant Relevant,Irrelevant,lrrelevant Relevant,Relevant,Relevant

Explanation / Answer

Labour costs are variable and it will decrease by $2 so it is relevant.Also,rent cost is fixed cost and it is $5000 which is relevant too.Sales is not affected so it is irrelevant.

Answer-Relevant,relevant, irrelevant.

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---