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Cost Accounting

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Background: CFL Bulbs - manufactured by Global Illuminating (GI) Global Illumination North America (GINA)
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What is the average annual saving to the Stardust Casino, over the fifteen year life of the retrofitted fixtures, of switching to CFL bulbs?
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The average annual saving to the Stardust Casino can be found by calculating the average cost which the company has to incur over the period of 15 years for the retrofitting and subtracting it from the average annual savings in power to the company.
First the retrofit expenses
3000 wall fixtures at the rate of $30 $90,000
5000 overhead fixtures at the rate of $35 $175,000
Add margin of 40% $106,000

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