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Chapter 12 Differential Analysis: The Key to Decision Making NJ's Inc. owns a machine with a cost of P360000 and accumulated depreciation of P50,000 that can be sold for 270,000, less a 5% sales commission. Alternatively, the machine can be leased by NJ's Inc. for three years for a total of P285000 at the end of which there is no residual value. In addition, the repair, insurance and property tax expense that would be incurred by NJ's Inc. on the machine would total P16,000 over the three years. Based on a differential analysis as of October 31 , 2016, the net differential income would be from what aemative? 0 a. P12,500 from sale alternative 0 b. P12,500 from lease alternative 0 c. P15,000 from lease alternative 0 d. P1 5,000 from sale alternative Which of the following statements is correct? O a. Profit variance analysis shows the causes of differences between budgeted profits and the actual profits earned O b. The fixed production cost variance is the difference between flexible budget and master budget costs O c. Variable cost variances are output variances O d. Marketing and administrative cost variances are treated differently from production cost variancesWhich of the following statements is not correct? 0 a. Unfavorable variance occurs when actual costs are lower than budgeted costs. 0 b. Variance = Actual result Budgeted performance 0 c. The labels \"favorable\" and "unfavorable" should not be considered as evaluations of performance without additional investigation 0 cl. An important part of variance analysis is to understand what might cause a difference between actual and budgeted results