Identify and compute the cost of the machine

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Reference no: EM132656248

Reda Company is planning to acquire a machine. The following costs relate to the machine:

List price 80,000

Tax 6,000

Freight 1,000

New parts to replace those damaged in unloading 2,000

Installation 1,500

Repair of vandalism during installation 1,200

Assembly 2,200

Special foundation to be laid on the floor 3,800

Testing for use 1,500

Monthly maintenance 300

A 10% discount will be given off the list price.

Problem 1: Identify and compute the cost of the machine. Explain your reasoning.

Reference no: EM132656248

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