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A company currently sells 8,020 basketballs (units) per year for $25 each. The company can make up to 10,020 basketballs per year. Each basketball made includes $15 in variable costs and $6.50 of fixed costs. A new customer offers to buy 605 basketballs for $20 each. For this special offer, the incremental fixed costs are $3.80 per ball. No other costs will change if the offer is accepted. a) For this special offer, calculate the income. b) Should the special offer be accepted or rejected? A company is considering making a part that it currently buys for $58 per unit. Making the part would require costs of $20 per unit for direct materials, $26 per unit for direct labor, and incremental overhead of $16 per unit. a) Prepare a make or buy analysis for the cost of this part. b) Should the company make or buy the part? A company's old machine has a book value of $52,000 and a remaining three-year useful life. The old machine could be sold now for $26,900, and the company could buy a new machine for $73,500. The old machine has variable manufacturing costs of $35,800 per year. The new machine's variable manufacturing costs would be $9,950 lower per year over its three-year useful life. Complete this question by entering your answers in the tabs below. Prepare an analysis of income effects to keep the old machine or replace it with the new machine. Note: Indicate amounts to be deducted with a minus sign. A company's old machine has a book value of $52,000 and a remaining three-year useful life. The old machine could be sold now for $26,900, and the company could buy a new machine for $73,500. The old machine has variable manufacturing costs of $35,800 per year. The new machine's variable manufacturing costs would be $9,950 lower per year over its three-year useful life. Complete this question by entering your answers in the tabs below. Should the old machine be kept or replaced? A company currently sells 8,020 basketballs (units) per year for $25 each. The company can make up to 10,020 basketballs per year. Each basketball made includes $15 in variable costs and $6.50 of fixed costs. A new customer offers to buy 605 basketballs for $20 each. For this special offer, the incremental fixed costs are $3.80 per ball. No other costs will change if the offer is accepted. a) For this special offer, calculate the income. b) Should the special offer be accepted or rejected? A company is considering making a part that it currently buys for $58 per unit. Making the part would require costs of $20 per unit for direct materials, $26 per unit for direct labor, and incremental overhead of $16 per unit. a) Prepare a make or buy analysis for the cost of this part. b) Should the company make or buy the part? A company's old machine has a book value of $52,000 and a remaining three-year useful life. The old machine could be sold now for $26,900, and the company could buy a new machine for $73,500. The old machine has variable manufacturing costs of $35,800 per year. The new machine's variable manufacturing costs would be $9,950 lower per year over its three-year useful life. Complete this question by entering your answers in the tabs below. Prepare an analysis of income effects to keep the old machine or replace it with the new machine. Note: Indicate amounts to be deducted with a minus sign. A company's old machine has a book value of $52,000 and a remaining three-year useful life. The old machine could be sold now for $26,900, and the company could buy a new machine for $73,500. The old machine has variable manufacturing costs of $35,800 per year. The new machine's variable manufacturing costs would be $9,950 lower per year over its three-year useful life. Complete this question by entering your answers in the tabs below. Should the old machine be kept or replaced
