(Ignore income taxes in this problem.)A company has provided the following data concerning a proposed project: The annual cost savings must be closest to:

Question

(Ignore income taxes in this problem.)A company has provided the following data concerning a proposed project:  The annual cost savings must be closest to:

Quizplus · Accepted Answer

To find the annual cost savings, we need to subtract the annual cost of the project from the annual revenue generated by the project.

Annual revenue = $72,000
Annual cost = $54,564
Annual cost savings = Annual revenue - Annual cost
= $72,000 - $54,564
= $17,436

Out of the given options, choice B, $2,436, is the closest to $17,436. 11ea7998_5c3c_58f3_911b_d18c72a310eb_TB2627_00_TB2627_00 $1,300 = -$10,000 + 4.639X
X = $11,300 ÷ 4.639 = $2,436 (rounded)

(Ignore Income Taxes in This Problem