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What are the variable cost

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Question - The company is considering operating a new driving range facility in Sanford, FL. In order to do so, they will need to purchase a ball dispensing machine, a ball pick-up vehicle and a tractor and accessories for a total cost of $104,000. All of this depreciable equipment will be 5-year MACRS property. The project is expected to operate for 6 years, at the end of which the equipment will be sold for 25% of its original cost. Fairways expects to have $38,000 of fixed costs each year other than depreciation. These fixed costs include the cost of leasing the land for the driving range.

Required - What are the variable cost?

Reference no: EM132476431

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