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Lease or Sell Felix Company owns a equipment with a cost of $362,400 and accumulated depreciation of $55,800 that can be sold for $275,500, less a 3% sales commission. Alternatively, Felix Company can lease the equipment to another company for three years for a total of $288,800, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Felix Company on the equipment would total $16,400 over the three years. Prepare a differential analysis on March 23 as to whether Felix Company should lease (Alternative 1) or sell (Alternative 2) the equipment. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Lease Equipment (Alt. 1) or Sell Equipment (Alt. 2) March 23 Differential Effect Lease Equipment Sell Equipment on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues Costs Income (Loss) Should Felix Company lease (Alternative 1) or sell (Alternative 2) the equipment? Lease the equipment Accept Business at Special Price Accounting numeric field Product R is normally sold for $41 per unit. A special price of $30 is offered for the export market. The variable production cost is $26 per unit. An additional export tariff of 11% of revenue must be paid for all export products. Assume that there is sufficient capacity for the special order. Prepare a differential analysis dated March 16, on whether to reject (Alternative 1) or accept (Alternative 2) the special order. If required, round your answers to two decimal places. If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Reject Order (Alt. 1) or Accept Order (Alt. 2) March 16 Differential Effect Reject Order Accept Order (Alternative 1) (Alternative 2) on Income (Alternative 2) Revenues, per unit Costs: Variable manufacturing costs, per unit Export tariff, per unit Income (Loss), per unit Should the special order be rejected (Alternative 1) or accepted (Alternative 2)? Process or Sell Product A is produced for $3.38 per pound. Product A can be sold without additional processing for $4.28 per pound or processed further into Product B at an additional cost of $0.38 per pound. Product B can be sold for $4.54 per pound. Prepare a differential analysis dated November 15 on whether to sell A (Alternative 1) or process further into B (Alternative 2). If required, round your answers to the nearest whole dollar. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Sell Product A (Alt. 1) or Process Further into Product B (Alt. 2) November 15 Process Further Differential Effect Sell Product A (Alternative 1) into Product on Income B (Alternative 2) (Alternative 2) Revenues, per unit Costs, per unit Income (Loss), per unit Should Product A be sold (Alternative 1) or processed further into Product B (Alternative 2)
