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A company is considering disposing of equipment that cost $50,000 and has $40,000 of accumulated depreciation to date. The company can sell the equipment through

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A company is considering disposing of equipment that cost $50,000 and has $40,000 of accumulated depreciation to date. The company can sell the equipment through a broker for $25,000 less 5% commission. Alternatively, they have an offer to lease the equipment for five years for a total lease cost of $48,750. If they choose this offer, the company will incur repair, insurance, and property tax expenses estimated at $8,000 over the five-year period. At lease-end, the equipment is expected to have no residual value. What is the net differential income from the lease alternative? o $14,500 O $27,000 o $17,000 O $7,000 Assume the following data: Fixed costs: $250,000 Unit selling price: $125 Unit variable costs: $73 What are the break even unit sales? O 2,000 units O 2,381 units 0 3,425 units O 4,808 units

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