8A)

B)

Garcia Co. sells snowboards. Each snowboard requires direct materials of $102, direct labor of $32, and variable overhead of $47. The company expects fixed overhead costs of $639,000 and fixed selling and administrative costs of $126,000 for the next year. It expects to produce and sell 10,200 snowboards in the next year. What will be the selling price per unit Garcia uses a markup of 10% of total cost? (Round your answer to 2 decimal places.) Saling price Per Unt Rory Company has a machine with a book value of $85,000 and a remaining five-year useful life. A new machine is available at a cost of $117,500, and Rory can also receive $81,000 for trading in its old machine. The new machine will reduce variable manufacturing costs by $13,500 per year over its five-year useful life. Calculate the incremental income. (Any losses or outflows should be entered with a minus sign.) Incremental Income From Replacing Machine Incremental income (incremental cost)