Question

whole grain bakery purchases an industrial bread machine for $25,500. in addition to the purchase price, the company makes the following expenditures: freight, $1,550; installation, $3,100; testing, $1,050; and property tax on the machine for the first year, $510. what is the initial cost of the bread machine?

Answer 1

The initial cost of the bread machine for Whole Grain Bakery, when including purchase price, freight, installation, testing, and property tax, totals $31,710.

Step-by-step explanation:

The initial cost of the bread machine would include the purchase price as well as additional expenditures such as freight, installation, testing, and property tax for the first year. To calculate this cost, we need to sum all these expenses.

Purchase price: $25,500
Freight: $1,550
Installation: $3,100
Testing: $1,050
Property tax: $510

The sum of these amounts gives us the initial cost of the bread machine:

Total initial cost = $25,500 + $1,550 + $3,100 + $1,050 + $510 = $31,710